DuPont Decomposition
Why does GARFIBRES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.7% = 13.0% × 0.81 × 1.39
Latest: FY2026
Profitability
Net Margin
13.0%
14.0% →13.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.81x
0.83x →0.81x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.39x
1.46x →1.39x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.3 pp over 5 years.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.0% | 0.83 | 1.46 | 17.0% |
| FY2023 | ₹0Cr | ₹0Cr | 13.3% | 0.87 | 1.47 | 16.9% |
| FY2024 | ₹0Cr | ₹0Cr | 15.9% | 0.74 | 1.44 | 17.0% |
| FY2025 | ₹0Cr | ₹0Cr | 15.0% | 0.88 | 1.41 | 18.6% |
| FY2026 | ₹0Cr | ₹0Cr | 13.0% | 0.81 | 1.39 | 14.7% |
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.