DuPont Decomposition
Why does MAZDOCK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
26.5% = 19.9% × 0.47 × 2.81
Latest: FY2026
Profitability
Net Margin
19.9%
10.7% →19.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.47x
0.19x →0.47x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.81x
7.72x →2.81x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.7 pp over 5 years. Driven by net margin improving (10.7% → 19.9%), asset turnover improving (0.19x → 0.47x), leverage falling (7.72x → 2.81x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.7% | 0.19 | 7.72 | 15.8% |
| FY2023 | ₹0Cr | ₹0Cr | 14.8% | 0.26 | 6.19 | 23.5% |
| FY2024 | ₹0Cr | ₹0Cr | 21.4% | 0.31 | 4.72 | 31.0% |
| FY2025 | ₹0Cr | ₹0Cr | 21.1% | 0.40 | 3.62 | 30.4% |
| FY2026 | ₹0Cr | ₹0Cr | 19.9% | 0.47 | 2.81 | 26.5% |
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.