DuPont Decomposition
Why does MUTHOOTMF earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.0% = 7.6% × 0.18 × 4.44
Latest: FY2026
Profitability
Net Margin
7.6%
6.6% →7.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.18x
0.13x →0.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.44x
4.18x →4.44x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.4 pp over 5 years. Driven by net margin improving (6.6% → 7.6%), leverage rising (4.18x → 4.44x). 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 | 6.6% | 0.13 | 4.18 | 3.5% |
| FY2023 | ₹0Cr | ₹0Cr | 12.7% | 0.15 | 5.25 | 10.1% |
| FY2024 | ₹0Cr | ₹0Cr | 22.7% | 0.17 | 4.13 | 16.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -9.0% | 0.23 | 4.12 | -8.4% |
| FY2026 | ₹0Cr | ₹0Cr | 7.6% | 0.18 | 4.44 | 6.0% |
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.