DuPont Decomposition
Why does MUKTAARTS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
136.3% = 5.1% × 0.49 × 54.60
Latest: FY2022
Profitability
Net Margin
5.1%
5.1% →5.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.49x
0.49x →0.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
54.60x
54.60x →54.60x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.1% | 0.49 | 54.60 | 136.3% |
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.