DuPont Decomposition
Why does MODIRUBBER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.0% = 70.1% × 0.04 × 1.12
Latest: FY2025
Profitability
Net Margin
70.1%
499.9% →70.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.04x
0.01x →0.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.12x
1.11x →1.12x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.2 pp over 4 years. Driven by net margin declining (499.9% → 70.1%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 499.9% | 0.01 | 1.11 | 4.1% |
| FY2023 | ₹0Cr | ₹0Cr | 519.5% | 0.01 | 1.14 | 4.3% |
| FY2024 | ₹0Cr | ₹0Cr | 69.2% | 0.03 | 1.13 | 2.4% |
| FY2025 | ₹0Cr | ₹0Cr | 70.1% | 0.04 | 1.12 | 3.0% |
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.