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
10.2% = 4.7% × 0.91 × 2.36
Latest: FY2025
Profitability
Net Margin
4.7%
3.2% →4.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.91x
1.95x →0.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.36x
3.81x →2.36x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.3 pp over 4 years. Driven by net margin improving (3.2% → 4.7%), asset turnover declining (1.95x → 0.91x), leverage falling (3.81x → 2.36x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.2% | 1.95 | 3.81 | 23.5% |
| FY2023 | ₹0Cr | ₹0Cr | 3.8% | 2.01 | 3.69 | 28.3% |
| FY2024 | ₹0Cr | ₹0Cr | 5.4% | 1.47 | 2.38 | 18.8% |
| FY2025 | ₹0Cr | ₹0Cr | 4.7% | 0.91 | 2.36 | 10.2% |
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.