DuPont Decomposition
Why does MASTERTR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.5% = 27.8% × 0.24 × 3.05
Latest: FY2025
Profitability
Net Margin
27.8%
18.9% →27.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.24x
0.28x →0.24x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.05x
3.43x →3.05x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.1 pp over 4 years. Driven by net margin improving (18.9% → 27.8%), leverage falling (3.43x → 3.05x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 18.9% | 0.28 | 3.43 | 18.4% |
| FY2023 | ₹0Cr | ₹0Cr | 22.8% | 0.23 | 3.36 | 18.0% |
| FY2024 | ₹0Cr | ₹0Cr | 26.3% | 0.22 | 3.69 | 21.4% |
| FY2025 | ₹0Cr | ₹0Cr | 27.8% | 0.24 | 3.05 | 20.5% |
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.