DuPont Decomposition
Why does MARUTI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.7% = 8.1% × 1.21 × 1.39
Latest: FY2026
Profitability
Net Margin
8.1%
4.4% →8.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.21x
1.18x →1.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.39x
1.35x →1.39x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.7 pp over 5 years. Driven by net margin improving (4.4% → 8.1%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.4% | 1.18 | 1.35 | 7.0% |
| FY2023 | ₹0Cr | ₹0Cr | 7.3% | 1.13 | 1.35 | 11.1% |
| FY2024 | ₹0Cr | ₹0Cr | 9.9% | 1.18 | 1.35 | 15.8% |
| FY2025 | ₹0Cr | ₹0Cr | 9.6% | 1.14 | 1.37 | 15.1% |
| FY2026 | ₹0Cr | ₹0Cr | 8.1% | 1.21 | 1.39 | 13.7% |
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.