DuPont Decomposition
Why does MEDANTA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.1% = 12.6% × 0.75 × 1.49
Latest: FY2026
Profitability
Net Margin
12.6%
9.1% →12.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
0.69x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.49x
1.95x →1.49x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.9 pp over 5 years. Driven by net margin improving (9.1% → 12.6%), leverage falling (1.95x → 1.49x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.1% | 0.69 | 1.95 | 12.1% |
| FY2023 | ₹0Cr | ₹0Cr | 12.2% | 0.65 | 1.70 | 13.4% |
| FY2024 | ₹0Cr | ₹0Cr | 14.8% | 0.75 | 1.48 | 16.5% |
| FY2025 | ₹0Cr | ₹0Cr | 13.0% | 0.77 | 1.41 | 14.2% |
| FY2026 | ₹0Cr | ₹0Cr | 12.6% | 0.75 | 1.49 | 14.1% |
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.