DuPont Decomposition
Why does GANESHBE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.1% = 10.2% × 0.52 × 1.34
Latest: FY2025
Profitability
Net Margin
10.2%
9.1% →10.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.52x
0.90x →0.52x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.34x
1.42x →1.34x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.6 pp over 4 years. Driven by net margin improving (9.1% → 10.2%), asset turnover declining (0.90x → 0.52x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.1% | 0.90 | 1.42 | 11.7% |
| FY2023 | ₹0Cr | ₹0Cr | 13.1% | 0.79 | 1.49 | 15.4% |
| FY2024 | ₹0Cr | ₹0Cr | 12.9% | 0.71 | 1.35 | 12.3% |
| FY2025 | ₹0Cr | ₹0Cr | 10.2% | 0.52 | 1.34 | 7.1% |
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.