DuPont Decomposition
Why does MWL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.7% = 4.2% × 1.30 × 3.10
Latest: FY2026
Profitability
Net Margin
4.2%
2.4% →4.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.30x
4.21x →1.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.10x
2.73x →3.10x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.5 pp over 5 years. Driven by net margin improving (2.4% → 4.2%), asset turnover declining (4.21x → 1.30x), leverage rising (2.73x → 3.10x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.4% | 4.21 | 2.73 | 27.3% |
| FY2023 | ₹0Cr | ₹0Cr | 2.7% | 2.49 | 1.91 | 12.8% |
| FY2024 | ₹0Cr | ₹0Cr | 2.7% | 1.98 | 2.29 | 12.1% |
| FY2025 | ₹0Cr | ₹0Cr | 2.8% | 1.67 | 2.49 | 11.5% |
| FY2026 | ₹0Cr | ₹0Cr | 4.2% | 1.30 | 3.10 | 16.7% |
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.