DuPont Decomposition
Why does MOSCHIP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.2% = 7.2% × 1.05 × 1.35
Latest: FY2025
Profitability
Net Margin
7.2%
4.4% →7.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.05x
0.91x →1.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.35x
2.48x →1.35x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~10%. Driven by net margin improving (4.4% → 7.2%), asset turnover improving (0.91x → 1.05x), leverage falling (2.48x → 1.35x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.4% | 0.91 | 2.48 | 9.9% |
| FY2023 | ₹0Cr | ₹0Cr | 3.1% | 0.92 | 1.90 | 5.5% |
| FY2024 | ₹0Cr | ₹0Cr | 3.4% | 0.77 | 1.42 | 3.7% |
| FY2025 | ₹0Cr | ₹0Cr | 7.2% | 1.05 | 1.35 | 10.2% |
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.