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
15.4% = 21.9% × 0.26 × 2.75
Latest: FY2026
Profitability
Net Margin
21.9%
18.9% →21.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.26x
0.28x →0.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.75x
3.43x →2.75x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.0 pp over 5 years. Driven by net margin improving (18.9% → 21.9%), leverage falling (3.43x → 2.75x).
Historical Decomposition
Last 5 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 | 3.38 | 18.1% |
| FY2024 | ₹0Cr | ₹0Cr | 26.3% | 0.22 | 3.70 | 21.4% |
| FY2025 | ₹0Cr | ₹0Cr | 22.5% | 0.30 | 3.06 | 20.6% |
| FY2026 | ₹0Cr | ₹0Cr | 21.9% | 0.26 | 2.75 | 15.4% |
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.