DuPont Decomposition
Why does MOKSH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.9% = 1.4% × 4.19 × 1.87
Latest: FY2024
Profitability
Net Margin
1.4%
1.4% →1.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
4.19x
5.62x →4.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.87x
1.56x →1.87x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.1 pp over 2 years. Driven by asset turnover declining (5.62x → 4.19x), leverage rising (1.56x → 1.87x).
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.4% | 5.62 | 1.56 | 12.0% |
| FY2024 | ₹0Cr | ₹0Cr | 1.4% | 4.19 | 1.87 | 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.