DuPont Decomposition
Why does MUKANDLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.0% = 1.6% × 1.38 × 3.73
Latest: FY2025
Profitability
Net Margin
1.6%
9.6% →1.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.38x
0.41x →1.38x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.73x
3.72x →3.73x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.7 pp over 3 years. Driven by net margin declining (9.6% → 1.6%), asset turnover improving (0.41x → 1.38x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.6% | 0.41 | 3.72 | 14.7% |
| FY2024 | ₹0Cr | ₹0Cr | 2.4% | 0.41 | 3.31 | 3.2% |
| FY2025 | ₹0Cr | ₹0Cr | 1.6% | 1.38 | 3.73 | 8.0% |
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.