DuPont Decomposition
Why does MARKOLINES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.8% = 7.3% × 0.97 × 1.79
Latest: FY2025
Profitability
Net Margin
7.3%
6.8% →7.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.97x
1.09x →0.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.79x
1.91x →1.79x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.5 pp over 4 years. Driven by asset turnover declining (1.09x → 0.97x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.8% | 1.09 | 1.91 | 14.2% |
| FY2023 | ₹0Cr | ₹0Cr | 5.9% | 1.42 | 2.19 | 18.4% |
| FY2024 | ₹0Cr | ₹0Cr | 5.2% | 1.39 | 2.36 | 17.0% |
| FY2025 | ₹0Cr | ₹0Cr | 7.3% | 0.97 | 1.79 | 12.8% |
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.