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
18.7% = 9.9% × 0.99 × 1.91
Latest: FY2025
Profitability
Net Margin
9.9%
12.3% →9.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.99x
0.83x →0.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.91x
1.68x →1.91x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.5 pp over 4 years. Driven by net margin declining (12.3% → 9.9%), asset turnover improving (0.83x → 0.99x), leverage rising (1.68x → 1.91x).
Historical Decomposition
Last 4 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% |
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.