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
20.6% = 14.3% × 0.71 × 2.01
Latest: FY2026
Profitability
Net Margin
14.3%
15.8% →14.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.71x
0.58x →0.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.01x
1.82x →2.01x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.9 pp over 5 years. Driven by net margin declining (15.8% → 14.3%), asset turnover improving (0.58x → 0.71x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.8% | 0.58 | 1.82 | 16.7% |
| FY2023 | ₹0Cr | ₹0Cr | 17.0% | 0.73 | 1.88 | 23.4% |
| FY2024 | ₹0Cr | ₹0Cr | 17.5% | 0.70 | 1.80 | 22.1% |
| FY2025 | ₹0Cr | ₹0Cr | 14.0% | 0.75 | 1.95 | 20.5% |
| FY2026 | ₹0Cr | ₹0Cr | 14.3% | 0.71 | 2.01 | 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.