DuPont Decomposition
Why does GANESHCP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.4% = 4.9% × 1.93 × 1.22
Latest: FY2026
Profitability
Net Margin
4.9%
6.0% →4.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.93x
1.67x →1.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.22x
1.53x →1.22x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.9 pp over 5 years. Driven by net margin declining (6.0% → 4.9%), asset turnover improving (1.67x → 1.93x), leverage falling (1.53x → 1.22x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.0% | 1.67 | 1.53 | 15.3% |
| FY2023 | ₹0Cr | ₹0Cr | 4.5% | 1.77 | 1.68 | 13.3% |
| FY2024 | ₹0Cr | ₹0Cr | 3.6% | 2.45 | 1.39 | 12.2% |
| FY2025 | ₹0Cr | ₹0Cr | 4.2% | 2.49 | 1.51 | 15.6% |
| FY2026 | ₹0Cr | ₹0Cr | 4.9% | 1.93 | 1.22 | 11.4% |
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.