DuPont Decomposition
Why does MUFTI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.7% = 11.1% × 0.80 × 1.88
Latest: FY2025
Profitability
Net Margin
11.1%
10.5% →11.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
0.72x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.88x
2.02x →1.88x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.5 pp over 4 years.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.5% | 0.72 | 2.02 | 15.2% |
| FY2023 | ₹0Cr | ₹0Cr | 15.6% | 0.87 | 2.04 | 27.6% |
| FY2024 | ₹0Cr | ₹0Cr | 10.4% | 0.80 | 2.08 | 17.3% |
| FY2025 | ₹0Cr | ₹0Cr | 11.1% | 0.80 | 1.88 | 16.7% |
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.