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
14.2% = 13.2% × 0.76 × 1.41
Latest: FY2025
Profitability
Net Margin
13.2%
9.1% →13.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.76x
0.69x →0.76x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.41x
1.95x →1.41x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.1 pp over 4 years. Driven by net margin improving (9.1% → 13.2%), leverage falling (1.95x → 1.41x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.1% | 0.69 | 1.95 | 12.1% |
| FY2023 | ₹0Cr | ₹0Cr | 12.1% | 0.65 | 1.70 | 13.4% |
| FY2024 | ₹0Cr | ₹0Cr | 14.6% | 0.76 | 1.48 | 16.4% |
| FY2025 | ₹0Cr | ₹0Cr | 13.2% | 0.76 | 1.41 | 14.2% |
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.