DuPont Decomposition
Why does MOBIKWIK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-20.6% = -10.4% × 0.86 × 2.31
Latest: FY2025
Profitability
Net Margin
-10.4%
-24.3% →-10.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.86x
0.63x →0.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.31x
3.86x →2.31x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 38.5 pp over 4 years. Driven by net margin improving (-24.3% → -10.4%), asset turnover improving (0.63x → 0.86x), leverage falling (3.86x → 2.31x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -24.3% | 0.63 | 3.86 | -59.2% |
| FY2023 | ₹0Cr | ₹-0Cr | -15.5% | 0.76 | 5.01 | -58.7% |
| FY2024 | ₹0Cr | ₹0Cr | 1.6% | 1.02 | 5.26 | 8.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -10.4% | 0.86 | 2.31 | -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.