DuPont Decomposition
Why does MIRZAINT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-0.6% = -0.6% × 0.75 × 1.30
Latest: FY2025
Profitability
Net Margin
-0.6%
6.3% →-0.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
1.87x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.30x
1.44x →1.30x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 17.6 pp over 4 years. Driven by net margin declining (6.3% → -0.6%), asset turnover declining (1.87x → 0.75x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.3% | 1.87 | 1.44 | 17.0% |
| FY2023 | ₹0Cr | ₹0Cr | 4.4% | 0.83 | 1.37 | 5.0% |
| FY2024 | ₹0Cr | ₹0Cr | 2.0% | 0.83 | 1.30 | 2.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.6% | 0.75 | 1.30 | -0.6% |
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.