DuPont Decomposition
Why does MOTOGENFIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.1% = 11.4% × 0.04 × 2.28
Latest: FY2025
Profitability
Net Margin
11.4%
-58.8% →11.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.04x
0.02x →0.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.28x
2.34x →2.28x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.3 pp over 4 years. Driven by net margin improving (-58.8% → 11.4%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -58.8% | 0.02 | 2.34 | -3.2% |
| FY2023 | ₹0Cr | ₹-0Cr | -48.3% | 0.03 | 2.35 | -3.5% |
| FY2024 | ₹0Cr | ₹0Cr | 18.7% | 0.04 | 2.33 | 1.6% |
| FY2025 | ₹0Cr | ₹0Cr | 11.4% | 0.04 | 2.28 | 1.1% |
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.