DuPont Decomposition
Why does MUKKA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.4% = 3.7% × 0.87 × 3.25
Latest: FY2026
Profitability
Net Margin
3.7%
3.2% →3.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.87x
1.95x →0.87x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.25x
3.99x →3.25x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.2 pp over 5 years. Driven by asset turnover declining (1.95x → 0.87x), leverage falling (3.99x → 3.25x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.2% | 1.95 | 3.99 | 24.6% |
| FY2023 | ₹0Cr | ₹0Cr | 3.8% | 2.01 | 3.89 | 29.8% |
| FY2024 | ₹0Cr | ₹0Cr | 5.2% | 1.43 | 2.38 | 17.7% |
| FY2025 | ₹0Cr | ₹0Cr | 4.7% | 0.91 | 2.44 | 10.5% |
| FY2026 | ₹0Cr | ₹0Cr | 3.7% | 0.87 | 3.25 | 10.4% |
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.