DuPont Decomposition
Why does MANORAMA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
23.9% = 14.3% × 0.78 × 2.14
Latest: FY2025
Profitability
Net Margin
14.3%
8.7% →14.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.78x
0.70x →0.78x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.14x
1.48x →2.14x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.9 pp over 4 years. Driven by net margin improving (8.7% → 14.3%), leverage rising (1.48x → 2.14x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.7% | 0.70 | 1.48 | 9.0% |
| FY2023 | ₹0Cr | ₹0Cr | 8.6% | 0.82 | 1.42 | 10.0% |
| FY2024 | ₹0Cr | ₹0Cr | 8.8% | 0.62 | 2.19 | 11.9% |
| FY2025 | ₹0Cr | ₹0Cr | 14.3% | 0.78 | 2.14 | 23.9% |
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.