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
10.6% = 8.2% × 0.84 × 1.53
Latest: FY2026
Profitability
Net Margin
8.2%
10.1% →8.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
1.10x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
1.26x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.4 pp over 5 years. Driven by net margin declining (10.1% → 8.2%), asset turnover declining (1.10x → 0.84x), leverage rising (1.26x → 1.53x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.1% | 1.10 | 1.26 | 13.9% |
| FY2023 | ₹0Cr | ₹0Cr | 11.1% | 1.04 | 1.25 | 14.4% |
| FY2024 | ₹0Cr | ₹0Cr | 9.6% | 0.85 | 1.38 | 11.2% |
| FY2025 | ₹0Cr | ₹0Cr | 7.8% | 0.83 | 1.47 | 9.5% |
| FY2026 | ₹0Cr | ₹0Cr | 8.2% | 0.84 | 1.53 | 10.6% |
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.