DuPont Decomposition
Why does MASFIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.5% = 21.1% × 0.13 × 4.62
Latest: FY2026
Profitability
Net Margin
21.1%
23.4% →21.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.13x
0.11x →0.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.62x
4.67x →4.62x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~12%. Driven by net margin declining (23.4% → 21.1%). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 23.4% | 0.11 | 4.67 | 11.9% |
| FY2023 | ₹0Cr | ₹0Cr | 26.2% | 0.10 | 5.28 | 13.4% |
| FY2024 | ₹0Cr | ₹0Cr | 24.9% | 0.11 | 5.36 | 14.1% |
| FY2025 | ₹0Cr | ₹0Cr | 21.5% | 0.12 | 4.68 | 11.9% |
| FY2026 | ₹0Cr | ₹0Cr | 21.1% | 0.13 | 4.62 | 12.5% |
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.