DuPont Decomposition
Why does METROBRAND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.2% = 14.0% × 0.75 × 1.92
Latest: FY2025
Profitability
Net Margin
14.0%
12.6% →14.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
0.19x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.92x
1.89x →1.92x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 15.7 pp over 3 years. Driven by net margin improving (12.6% → 14.0%), asset turnover improving (0.19x → 0.75x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 12.6% | 0.19 | 1.89 | 4.4% |
| FY2024 | ₹0Cr | ₹0Cr | 28.5% | 0.18 | 1.79 | 9.0% |
| FY2025 | ₹0Cr | ₹0Cr | 14.0% | 0.75 | 1.92 | 20.2% |
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.