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
16.5% = 12.6% × 0.62 × 2.10
Latest: FY2025
Profitability
Net Margin
12.6%
16.5% →12.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.62x
0.65x →0.62x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.10x
1.77x →2.10x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.5 pp over 4 years. Driven by net margin declining (16.5% → 12.6%), leverage rising (1.77x → 2.10x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.5% | 0.65 | 1.77 | 18.9% |
| FY2023 | ₹0Cr | ₹0Cr | 14.7% | 0.71 | 1.84 | 19.3% |
| FY2024 | ₹0Cr | ₹0Cr | 10.9% | 0.75 | 1.80 | 14.7% |
| FY2025 | ₹0Cr | ₹0Cr | 12.6% | 0.62 | 2.10 | 16.5% |
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.