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
18.6% = 15.2% × 0.87 × 1.41
Latest: FY2025
Profitability
Net Margin
15.2%
14.0% →15.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.87x
0.83x →0.87x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.41x
1.46x →1.41x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.7 pp over 4 years. Driven by net margin improving (14.0% → 15.2%).
Historical Decomposition
Last 4 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 | 15.2% | 0.87 | 1.41 | 18.6% |
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.