DuPont Decomposition
Why does MARKSANS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.3% = 14.6% × 0.81 × 1.30
Latest: FY2025
Profitability
Net Margin
14.6%
17.0% →14.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.81x
0.22x →0.81x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.30x
1.26x →1.30x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.5 pp over 3 years. Driven by net margin declining (17.0% → 14.6%), asset turnover improving (0.22x → 0.81x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 17.0% | 0.22 | 1.26 | 4.7% |
| FY2024 | ₹0Cr | ₹0Cr | 13.9% | 0.21 | 1.30 | 3.8% |
| FY2025 | ₹0Cr | ₹0Cr | 14.6% | 0.81 | 1.30 | 15.3% |
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.