DuPont Decomposition
Why does MAZDOCK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
30.4% = 21.6% × 0.39 × 3.62
Latest: FY2025
Profitability
Net Margin
21.6%
15.7% →21.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.39x
0.07x →0.39x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.62x
6.19x →3.62x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 23.5 pp over 3 years. Driven by net margin improving (15.7% → 21.6%), asset turnover improving (0.07x → 0.39x), leverage falling (6.19x → 3.62x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 15.7% | 0.07 | 6.19 | 6.8% |
| FY2024 | ₹0Cr | ₹0Cr | 21.4% | 0.11 | 4.72 | 10.6% |
| FY2025 | ₹0Cr | ₹0Cr | 21.6% | 0.39 | 3.62 | 30.4% |
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.