DuPont Decomposition
Why does MARICO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
41.9% = 12.9% × 1.35 × 2.39
Latest: FY2026
Profitability
Net Margin
12.9%
13.0% →12.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.35x
1.63x →1.35x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.39x
1.73x →2.39x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.3 pp over 5 years. Driven by asset turnover declining (1.63x → 1.35x), leverage rising (1.73x → 2.39x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 13.0% | 1.63 | 1.73 | 36.6% |
| FY2023 | ₹0Cr | ₹0Cr | 13.4% | 1.39 | 1.83 | 34.3% |
| FY2024 | ₹0Cr | ₹0Cr | 15.5% | 1.29 | 1.94 | 38.6% |
| FY2025 | ₹0Cr | ₹0Cr | 15.0% | 1.30 | 2.10 | 41.0% |
| FY2026 | ₹0Cr | ₹0Cr | 12.9% | 1.35 | 2.39 | 41.9% |
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.