DuPont Decomposition
Why does GABRIEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.7% = 6.1% × 1.99 × 1.71
Latest: FY2025
Profitability
Net Margin
6.1%
4.6% →6.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.99x
0.52x →1.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.71x
1.64x →1.71x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 16.8 pp over 3 years. Driven by net margin improving (4.6% → 6.1%), asset turnover improving (0.52x → 1.99x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.6% | 0.52 | 1.64 | 3.9% |
| FY2024 | ₹0Cr | ₹0Cr | 5.3% | 0.52 | 1.78 | 4.9% |
| FY2025 | ₹0Cr | ₹0Cr | 6.1% | 1.99 | 1.71 | 20.7% |
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.