DuPont Decomposition
Why does MAYURUNIQ earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.6% = 17.1% × 0.83 × 1.10
Latest: FY2025
Profitability
Net Margin
17.1%
12.1% →17.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.83x
0.22x →0.83x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.10x
1.16x →1.10x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.5 pp over 3 years. Driven by net margin improving (12.1% → 17.1%), asset turnover improving (0.22x → 0.83x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 12.1% | 0.22 | 1.16 | 3.1% |
| FY2024 | ₹0Cr | ₹0Cr | 14.6% | 0.23 | 1.11 | 3.7% |
| FY2025 | ₹0Cr | ₹0Cr | 17.1% | 0.83 | 1.10 | 15.6% |
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.