DuPont Decomposition
Why does MOTHERSON earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.4% = 3.1% × 1.13 × 2.70
Latest: FY2026
Profitability
Net Margin
3.1%
1.4% →3.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.13x
1.12x →1.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.70x
2.73x →2.70x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.2 pp over 5 years. Driven by net margin improving (1.4% → 3.1%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.4% | 1.12 | 2.73 | 4.2% |
| FY2023 | ₹0Cr | ₹0Cr | 1.9% | 1.26 | 2.75 | 6.7% |
| FY2024 | ₹0Cr | ₹0Cr | 2.8% | 1.15 | 3.25 | 10.4% |
| FY2025 | ₹0Cr | ₹0Cr | 3.4% | 1.21 | 2.66 | 10.9% |
| FY2026 | ₹0Cr | ₹0Cr | 3.1% | 1.13 | 2.70 | 9.4% |
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.