DuPont Decomposition
Why does MOTISONS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.4% = 9.3% × 0.91 × 1.23
Latest: FY2025
Profitability
Net Margin
9.3%
4.7% →9.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.91x
1.03x →0.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
2.66x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.3 pp over 4 years. Driven by net margin improving (4.7% → 9.3%), asset turnover declining (1.03x → 0.91x), leverage falling (2.66x → 1.23x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.7% | 1.03 | 2.66 | 12.8% |
| FY2023 | ₹0Cr | ₹0Cr | 6.1% | 1.09 | 2.45 | 16.1% |
| FY2024 | ₹0Cr | ₹0Cr | 9.3% | 0.25 | 1.45 | 3.3% |
| FY2025 | ₹0Cr | ₹0Cr | 9.3% | 0.91 | 1.23 | 10.4% |
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.