DuPont Decomposition
Why does MAWANASUG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
22.2% = 7.6% × 1.32 × 2.23
Latest: FY2025
Profitability
Net Margin
7.6%
1.8% →7.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.32x
1.39x →1.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.23x
2.74x →2.23x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 15.4 pp over 4 years. Driven by net margin improving (1.8% → 7.6%), leverage falling (2.74x → 2.23x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.8% | 1.39 | 2.74 | 6.8% |
| FY2023 | ₹0Cr | ₹0Cr | 0.9% | 1.43 | 2.69 | 3.4% |
| FY2024 | ₹0Cr | ₹0Cr | 2.8% | 1.15 | 2.87 | 9.2% |
| FY2025 | ₹0Cr | ₹0Cr | 7.6% | 1.32 | 2.23 | 22.2% |
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.