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
35.7% = 6.5% × 2.49 × 2.20
Latest: FY2025
Profitability
Net Margin
6.5%
6.9% →6.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.49x
2.44x →2.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.20x
2.18x →2.20x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~36%.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.9% | 2.44 | 2.18 | 36.6% |
| FY2024 | ₹0Cr | ₹0Cr | 7.7% | 2.65 | 1.87 | 38.1% |
| FY2025 | ₹0Cr | ₹0Cr | 6.5% | 2.49 | 2.20 | 35.7% |
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.