DuPont Decomposition
Why does MANKIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.7% = 13.4% × 0.51 × 1.72
Latest: FY2026
Profitability
Net Margin
13.4%
18.4% →13.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.51x
0.85x →0.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.72x
1.49x →1.72x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.5 pp over 5 years. Driven by net margin declining (18.4% → 13.4%), asset turnover declining (0.85x → 0.51x), leverage rising (1.49x → 1.72x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 18.4% | 0.85 | 1.49 | 23.3% |
| FY2023 | ₹0Cr | ₹0Cr | 14.7% | 0.90 | 1.31 | 17.2% |
| FY2024 | ₹0Cr | ₹0Cr | 18.6% | 0.86 | 1.28 | 20.4% |
| FY2025 | ₹0Cr | ₹0Cr | 16.3% | 0.44 | 1.94 | 13.9% |
| FY2026 | ₹0Cr | ₹0Cr | 13.4% | 0.51 | 1.72 | 11.7% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.