DuPont Decomposition
Why does MANORG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.3% = 2.4% × 0.85 × 2.13
Latest: FY2025
Profitability
Net Margin
2.4%
10.9% →2.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.85x
0.88x →0.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.13x
1.84x →2.13x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.4 pp over 4 years. Driven by net margin declining (10.9% → 2.4%), leverage rising (1.84x → 2.13x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.9% | 0.88 | 1.84 | 17.7% |
| FY2023 | ₹0Cr | ₹-0Cr | -5.5% | 0.97 | 1.83 | -9.9% |
| FY2024 | ₹0Cr | ₹0Cr | 0.9% | 1.02 | 1.73 | 1.6% |
| FY2025 | ₹0Cr | ₹0Cr | 2.4% | 0.85 | 2.13 | 4.3% |
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.