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
11.7% = 24.4% × 0.10 × 4.60
Latest: FY2025
Profitability
Net Margin
24.4%
20.6% →24.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.10x
0.04x →0.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.60x
5.10x →4.60x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.0 pp over 3 years. Driven by net margin improving (20.6% → 24.4%), leverage falling (5.10x → 4.60x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 20.6% | 0.04 | 5.10 | 3.7% |
| FY2024 | ₹0Cr | ₹0Cr | 20.3% | 0.04 | 5.25 | 3.9% |
| FY2025 | ₹0Cr | ₹0Cr | 24.4% | 0.10 | 4.60 | 11.7% |
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.