DuPont Decomposition
Why does MOREPENLAB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.6% = 5.3% × 0.93 × 1.55
Latest: FY2026
Profitability
Net Margin
5.3%
6.6% →5.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.93x
1.44x →0.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.55x
1.85x →1.55x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.0 pp over 5 years. Driven by net margin declining (6.6% → 5.2%), asset turnover declining (1.44x → 0.93x), leverage falling (1.85x → 1.55x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.6% | 1.44 | 1.85 | 17.6% |
| FY2023 | ₹0Cr | ₹0Cr | 2.7% | 1.27 | 1.47 | 5.1% |
| FY2024 | ₹0Cr | ₹0Cr | 5.7% | 1.30 | 1.53 | 11.3% |
| FY2025 | ₹0Cr | ₹0Cr | 6.5% | 1.02 | 1.54 | 10.2% |
| FY2026 | ₹0Cr | ₹0Cr | 5.3% | 0.93 | 1.55 | 7.6% |
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.