DuPont Decomposition
Why does UMIYA-MRO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
34.9% = 55.5% × 0.27 × 2.32
Latest: FY2026
Profitability
Net Margin
55.5%
64.2% →55.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.27x
0.75x →0.27x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.32x
2.35x →2.32x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 78.2 pp over 5 years. Driven by net margin declining (64.2% → 55.5%), asset turnover declining (0.75x → 0.27x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 64.2% | 0.75 | 2.35 | 113.1% |
| FY2023 | ₹0Cr | ₹-0Cr | -11.3% | 0.20 | 2.50 | -5.7% |
| FY2024 | ₹0Cr | ₹0Cr | 9.5% | 0.17 | 2.94 | 4.8% |
| FY2025 | ₹0Cr | ₹0Cr | 12.0% | 0.20 | 3.31 | 7.8% |
| FY2026 | ₹0Cr | ₹0Cr | 55.5% | 0.27 | 2.32 | 34.9% |
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.