DuPont Decomposition
Why does MEDIASSIST earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.5% = 9.7% × 0.66 × 1.64
Latest: FY2026
Profitability
Net Margin
9.7%
16.5% →9.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.66x
0.65x →0.66x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.64x
1.79x →1.64x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.6 pp over 5 years. Driven by net margin declining (16.5% → 9.7%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.5% | 0.65 | 1.79 | 19.1% |
| FY2023 | ₹0Cr | ₹0Cr | 14.7% | 0.71 | 1.87 | 19.7% |
| FY2024 | ₹0Cr | ₹0Cr | 10.6% | 0.74 | 1.80 | 14.2% |
| FY2025 | ₹0Cr | ₹0Cr | 12.6% | 0.62 | 2.14 | 16.8% |
| FY2026 | ₹0Cr | ₹0Cr | 9.7% | 0.66 | 1.64 | 10.5% |
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.