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
9.5% = 5.0% × 1.06 × 1.79
Latest: FY2025
Profitability
Net Margin
5.0%
3.5% →5.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.06x
1.01x →1.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.79x
2.14x →1.79x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.1 pp over 4 years. Driven by net margin improving (3.5% → 5.0%), leverage falling (2.14x → 1.79x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.5% | 1.01 | 2.14 | 7.4% |
| FY2023 | ₹0Cr | ₹0Cr | 3.9% | 0.95 | 2.24 | 8.2% |
| FY2024 | ₹0Cr | ₹0Cr | 4.2% | 1.01 | 2.46 | 10.3% |
| FY2025 | ₹0Cr | ₹0Cr | 5.0% | 1.06 | 1.79 | 9.5% |
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.