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
11.3% = 2.8% × 1.67 × 2.43
Latest: FY2025
Profitability
Net Margin
2.8%
2.4% →2.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.67x
4.21x →1.67x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.43x
2.73x →2.43x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 16.0 pp over 4 years. Driven by asset turnover declining (4.21x → 1.67x), leverage falling (2.73x → 2.43x).
Historical Decomposition
Last 4 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 | 1.85 | 12.3% |
| FY2024 | ₹0Cr | ₹0Cr | 2.7% | 1.98 | 2.22 | 11.7% |
| FY2025 | ₹0Cr | ₹0Cr | 2.8% | 1.67 | 2.43 | 11.3% |
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.