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
7.2% = 12.0% × 0.20 × 3.04
Latest: FY2025
Profitability
Net Margin
12.0%
64.2% →12.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.20x
0.75x →0.20x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.04x
2.35x →3.04x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 105.9 pp over 4 years. Driven by net margin declining (64.2% → 12.0%), asset turnover declining (0.75x → 0.20x), leverage rising (2.35x → 3.04x).
Historical Decomposition
Last 4 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 | 3.04 | 7.2% |
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.