DuPont Decomposition
Why does MAZDA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.8% = 12.9% × 0.73 × 1.15
Latest: FY2025
Profitability
Net Margin
12.9%
14.1% →12.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.85x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.15x
1.21x →1.15x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.5 pp over 3 years. Driven by net margin declining (14.1% → 12.9%), asset turnover declining (0.85x → 0.73x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 14.1% | 0.85 | 1.21 | 14.3% |
| FY2024 | ₹0Cr | ₹0Cr | 14.1% | 0.93 | 1.13 | 14.8% |
| FY2025 | ₹0Cr | ₹0Cr | 12.9% | 0.73 | 1.15 | 10.8% |
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.