DuPont Decomposition
Why does MOL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-0.7% = -0.5% × 0.67 × 2.04
Latest: FY2025
Profitability
Net Margin
-0.5%
9.4% →-0.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.67x
0.18x →0.67x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.04x
1.92x →2.04x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.9 pp over 3 years. Driven by net margin declining (9.4% → -0.5%), asset turnover improving (0.18x → 0.67x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.4% | 0.18 | 1.92 | 3.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -4.4% | 0.13 | 1.99 | -1.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.5% | 0.67 | 2.04 | -0.7% |
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.