DuPont Decomposition
Why does MUTHOOTFIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
27.1% = 52.3% × 0.10 × 5.00
Latest: FY2026
Profitability
Net Margin
52.3%
50.5% →52.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.10x
0.10x →0.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
5.00x
4.06x →5.00x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.7 pp over 5 years. Driven by net margin improving (50.5% → 52.3%), leverage rising (4.06x → 5.00x). 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 | 50.5% | 0.10 | 4.06 | 21.4% |
| FY2023 | ₹0Cr | ₹0Cr | 46.9% | 0.10 | 3.70 | 16.7% |
| FY2024 | ₹0Cr | ₹0Cr | 44.8% | 0.10 | 3.84 | 17.2% |
| FY2025 | ₹0Cr | ₹0Cr | 41.5% | 0.10 | 4.52 | 18.2% |
| FY2026 | ₹0Cr | ₹0Cr | 52.3% | 0.10 | 5.00 | 27.1% |
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.