DuPont Decomposition
Why does MAXIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-39.1% = -96.5% × 0.23 × 1.76
Latest: FY2025
Profitability
Net Margin
-96.5%
-7.4% →-96.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.23x
0.07x →0.23x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.76x
1.39x →1.76x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 38.4 pp over 3 years. Driven by net margin declining (-7.4% → -96.5%), asset turnover improving (0.07x → 0.23x), leverage rising (1.39x → 1.76x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -7.4% | 0.07 | 1.39 | -0.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -47.9% | 0.07 | 1.39 | -4.4% |
| FY2025 | ₹0Cr | ₹-0Cr | -96.5% | 0.23 | 1.76 | -39.1% |
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.