DuPont Decomposition
Why does MENONBE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.6% = 13.0% × 1.10 × 1.44
Latest: FY2026
Profitability
Net Margin
13.0%
12.7% →13.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.10x
1.19x →1.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.46x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.3 pp over 5 years.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.7% | 1.19 | 1.46 | 21.9% |
| FY2023 | ₹0Cr | ₹0Cr | 15.2% | 1.24 | 1.30 | 24.4% |
| FY2024 | ₹0Cr | ₹0Cr | 11.7% | 1.01 | 1.43 | 16.8% |
| FY2025 | ₹0Cr | ₹0Cr | 10.4% | 1.04 | 1.45 | 15.7% |
| FY2026 | ₹0Cr | ₹0Cr | 13.0% | 1.10 | 1.44 | 20.6% |
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.