DuPont Decomposition
Why does MURUDCERA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.7% = 4.9% × 0.36 × 1.53
Latest: FY2025
Profitability
Net Margin
4.9%
1.8% →4.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.36x
0.26x →0.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
1.40x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.0 pp over 4 years. Driven by net margin improving (1.8% → 4.9%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.8% | 0.26 | 1.40 | 0.6% |
| FY2023 | ₹0Cr | ₹0Cr | 3.8% | 0.32 | 1.53 | 1.9% |
| FY2024 | ₹0Cr | ₹0Cr | 2.8% | 0.34 | 1.50 | 1.4% |
| FY2025 | ₹0Cr | ₹0Cr | 4.9% | 0.36 | 1.53 | 2.7% |
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.