DuPont Decomposition
Why does MCLOUD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.6% = 16.4% × 0.61 × 1.68
Latest: FY2026
Profitability
Net Margin
16.4%
11.7% →16.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.61x
1.29x →0.61x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.68x
2.53x →1.68x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 21.5 pp over 5 years. Driven by net margin improving (11.7% → 16.4%), asset turnover declining (1.29x → 0.61x), leverage falling (2.53x → 1.68x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.7% | 1.29 | 2.53 | 38.2% |
| FY2023 | ₹0Cr | ₹0Cr | 17.3% | 0.59 | 2.44 | 24.9% |
| FY2024 | ₹0Cr | ₹0Cr | 18.3% | 0.70 | 1.98 | 25.3% |
| FY2025 | ₹0Cr | ₹0Cr | 17.2% | 0.67 | 1.72 | 19.8% |
| FY2026 | ₹0Cr | ₹0Cr | 16.4% | 0.61 | 1.68 | 16.6% |
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.