DuPont Decomposition
Why does GALAXYSURF earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.9% = 7.3% × 1.21 × 1.47
Latest: FY2025
Profitability
Net Margin
7.3%
9.3% →7.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.21x
0.36x →1.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.47x
1.45x →1.47x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.1 pp over 3 years. Driven by net margin declining (9.3% → 7.3%), asset turnover improving (0.36x → 1.21x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.3% | 0.36 | 1.45 | 4.8% |
| FY2024 | ₹0Cr | ₹0Cr | 8.3% | 0.32 | 1.34 | 3.6% |
| FY2025 | ₹0Cr | ₹0Cr | 7.3% | 1.21 | 1.47 | 12.9% |
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.