DuPont Decomposition
Why does MEDPLUS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.1% = 3.2% × 1.75 × 1.99
Latest: FY2026
Profitability
Net Margin
3.2%
2.5% →3.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.75x
1.45x →1.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.99x
1.83x →1.99x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.4 pp over 5 years. Driven by asset turnover improving (1.45x → 1.75x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.5% | 1.45 | 1.83 | 6.8% |
| FY2023 | ₹0Cr | ₹0Cr | 1.1% | 1.62 | 1.88 | 3.3% |
| FY2024 | ₹0Cr | ₹0Cr | 1.2% | 1.85 | 1.90 | 4.2% |
| FY2025 | ₹0Cr | ₹0Cr | 2.5% | 1.83 | 1.93 | 8.6% |
| FY2026 | ₹0Cr | ₹0Cr | 3.2% | 1.75 | 1.99 | 11.1% |
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.