DuPont Decomposition
Why does MSUMI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
28.9% = 5.5% × 2.41 × 2.20
Latest: FY2026
Profitability
Net Margin
5.5%
7.3% →5.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.41x
2.20x →2.41x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.20x
2.30x →2.20x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.9 pp over 5 years. Driven by net margin declining (7.3% → 5.5%), asset turnover improving (2.20x → 2.41x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.3% | 2.20 | 2.30 | 36.9% |
| FY2023 | ₹0Cr | ₹0Cr | 6.9% | 2.42 | 2.18 | 36.6% |
| FY2024 | ₹0Cr | ₹0Cr | 7.7% | 2.64 | 1.87 | 38.1% |
| FY2025 | ₹0Cr | ₹0Cr | 6.5% | 2.49 | 2.20 | 35.7% |
| FY2026 | ₹0Cr | ₹0Cr | 5.5% | 2.41 | 2.20 | 28.9% |
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.