DuPont Decomposition
Why does METROPOLIS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.9% = 10.9% × 0.71 × 1.40
Latest: FY2025
Profitability
Net Margin
10.9%
12.7% →10.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.71x
0.19x →0.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.40x
1.63x →1.40x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.8 pp over 4 years. Driven by net margin declining (12.7% → 10.9%), asset turnover improving (0.19x → 0.71x), leverage falling (1.63x → 1.40x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.7% | 0.19 | 1.63 | 4.0% |
| FY2023 | ₹0Cr | ₹0Cr | 15.1% | 0.18 | 1.53 | 4.3% |
| FY2024 | ₹0Cr | ₹0Cr | 11.0% | 0.21 | 1.42 | 3.3% |
| FY2025 | ₹0Cr | ₹0Cr | 10.9% | 0.71 | 1.40 | 10.9% |
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.