DuPont Decomposition
Why does MARALOVER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-22.2% = -2.3% × 1.43 × 6.72
Latest: FY2025
Profitability
Net Margin
-2.3%
6.3% →-2.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.43x
1.79x →1.43x
Revenue per ₹ of assets
Leverage
Equity Multiplier
6.72x
3.56x →6.72x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 62.7 pp over 4 years. Driven by net margin declining (6.3% → -2.3%), asset turnover declining (1.79x → 1.43x), leverage rising (3.56x → 6.72x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.3% | 1.79 | 3.56 | 40.4% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.6% | 1.58 | 4.49 | -11.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -1.0% | 1.27 | 5.76 | -7.4% |
| FY2025 | ₹0Cr | ₹-0Cr | -2.3% | 1.43 | 6.72 | -22.2% |
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.