DuPont Decomposition
Why does MARINE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.4% = 5.0% × 1.06 × 1.78
Latest: FY2025
Profitability
Net Margin
5.0%
2.8% →5.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.06x
0.31x →1.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.78x
2.24x →1.78x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.5 pp over 3 years. Driven by net margin improving (2.8% → 5.0%), asset turnover improving (0.31x → 1.06x), leverage falling (2.24x → 1.78x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.8% | 0.31 | 2.24 | 1.9% |
| FY2024 | ₹0Cr | ₹0Cr | 5.1% | 0.39 | 2.46 | 4.9% |
| FY2025 | ₹0Cr | ₹0Cr | 5.0% | 1.06 | 1.78 | 9.4% |
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.