DuPont Decomposition
Why does MUNJALSHOW earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.3% = 2.3% × 1.50 × 1.23
Latest: FY2025
Profitability
Net Margin
2.3%
1.1% →2.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.50x
1.34x →1.50x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.23x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.4 pp over 4 years. Driven by net margin improving (1.1% → 2.3%), asset turnover improving (1.34x → 1.50x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.1% | 1.34 | 1.23 | 1.9% |
| FY2023 | ₹0Cr | ₹0Cr | 2.6% | 1.52 | 1.24 | 4.9% |
| FY2024 | ₹0Cr | ₹0Cr | 2.6% | 1.44 | 1.22 | 4.6% |
| FY2025 | ₹0Cr | ₹0Cr | 2.3% | 1.50 | 1.23 | 4.3% |
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.