DuPont Decomposition
Why does MUTHOOTCAP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.7% = 1.8% × 0.15 × 6.05
Latest: FY2026
Profitability
Net Margin
1.8%
-40.8% →1.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.15x
0.19x →0.15x
Revenue per ₹ of assets
Leverage
Equity Multiplier
6.05x
5.10x →6.05x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 41.0 pp over 5 years. Driven by net margin improving (-40.8% → 1.8%), leverage rising (5.10x → 6.05x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -40.8% | 0.19 | 5.10 | -39.4% |
| FY2023 | ₹0Cr | ₹0Cr | 18.3% | 0.18 | 4.98 | 16.1% |
| FY2024 | ₹0Cr | ₹0Cr | 32.4% | 0.16 | 3.78 | 20.1% |
| FY2025 | ₹0Cr | ₹0Cr | 9.7% | 0.13 | 5.45 | 7.0% |
| FY2026 | ₹0Cr | ₹0Cr | 1.8% | 0.15 | 6.05 | 1.7% |
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.