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
12.6% = 11.6% × 0.77 × 1.41
Latest: FY2026
Profitability
Net Margin
11.6%
17.4% →11.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.80x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.41x
1.73x →1.41x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.6 pp over 5 years. Driven by net margin declining (17.4% → 11.6%), leverage falling (1.73x → 1.41x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 17.4% | 0.80 | 1.73 | 24.2% |
| FY2023 | ₹0Cr | ₹0Cr | 12.4% | 0.76 | 1.52 | 14.5% |
| FY2024 | ₹0Cr | ₹0Cr | 10.6% | 0.78 | 1.42 | 11.7% |
| FY2025 | ₹0Cr | ₹0Cr | 10.9% | 0.71 | 1.40 | 10.9% |
| FY2026 | ₹0Cr | ₹0Cr | 11.6% | 0.77 | 1.41 | 12.6% |
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.