DuPont Decomposition
Why does MOLDTKPAC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.5% = 7.8% × 0.83 × 1.47
Latest: FY2025
Profitability
Net Margin
7.8%
12.4% →7.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.83x
0.27x →0.83x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.47x
1.25x →1.47x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.4 pp over 3 years. Driven by net margin declining (12.4% → 7.8%), asset turnover improving (0.27x → 0.83x), leverage rising (1.25x → 1.47x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 12.4% | 0.27 | 1.25 | 4.1% |
| FY2024 | ₹0Cr | ₹0Cr | 10.2% | 0.22 | 1.38 | 3.0% |
| FY2025 | ₹0Cr | ₹0Cr | 7.8% | 0.83 | 1.47 | 9.5% |
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.