DuPont Decomposition
Why does MUFIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.9% = 13.6% × 0.10 × 3.53
Latest: FY2026
Profitability
Net Margin
13.6%
71.3% →13.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.10x
0.15x →0.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.53x
1.01x →3.53x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.8 pp over 5 years. Driven by net margin declining (71.3% → 13.6%), leverage rising (1.01x → 3.53x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 71.3% | 0.15 | 1.01 | 10.7% |
| FY2023 | ₹0Cr | ₹0Cr | 24.5% | 0.08 | 2.57 | 5.3% |
| FY2024 | ₹0Cr | ₹0Cr | 17.8% | 0.10 | 3.79 | 6.6% |
| FY2025 | ₹0Cr | ₹0Cr | 10.8% | 0.18 | 3.83 | 7.3% |
| FY2026 | ₹0Cr | ₹0Cr | 13.6% | 0.10 | 3.53 | 4.9% |
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.