DuPont Decomposition
Why does MATRIMONY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.6% = 7.4% × 1.04 × 2.13
Latest: FY2026
Profitability
Net Margin
7.4%
12.3% →7.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.04x
0.83x →1.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.13x
1.68x →2.13x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~17%. Driven by net margin declining (12.3% → 7.4%), asset turnover improving (0.83x → 1.04x), leverage rising (1.68x → 2.13x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.3% | 0.83 | 1.68 | 17.3% |
| FY2023 | ₹0Cr | ₹0Cr | 10.2% | 0.98 | 1.84 | 18.4% |
| FY2024 | ₹0Cr | ₹0Cr | 10.3% | 0.96 | 1.72 | 17.0% |
| FY2025 | ₹0Cr | ₹0Cr | 9.9% | 0.99 | 1.91 | 18.7% |
| FY2026 | ₹0Cr | ₹0Cr | 7.4% | 1.04 | 2.13 | 16.6% |
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.