DuPont Decomposition
Why does GANGAFORGE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.9% = 1.4% × 0.73 × 1.82
Latest: FY2025
Profitability
Net Margin
1.4%
3.7% →1.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.91x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.82x
2.66x →1.82x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.0 pp over 4 years. Driven by net margin declining (3.7% → 1.4%), asset turnover declining (0.91x → 0.73x), leverage falling (2.66x → 1.82x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.7% | 0.91 | 2.66 | 8.9% |
| FY2023 | ₹0Cr | ₹0Cr | 5.0% | 0.95 | 2.60 | 12.4% |
| FY2024 | ₹0Cr | ₹0Cr | 1.2% | 0.79 | 1.47 | 1.4% |
| FY2025 | ₹0Cr | ₹0Cr | 1.4% | 0.73 | 1.82 | 1.9% |
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.