DuPont Decomposition
Why does GATEWAY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.1% = 22.1% × 0.49 × 1.41
Latest: FY2025
Profitability
Net Margin
22.1%
18.2% →22.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.49x
0.15x →0.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.41x
1.41x →1.41x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.3 pp over 3 years. Driven by net margin improving (18.2% → 22.1%), asset turnover improving (0.15x → 0.49x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 18.2% | 0.15 | 1.41 | 3.9% |
| FY2024 | ₹0Cr | ₹0Cr | 15.1% | 0.14 | 1.37 | 2.9% |
| FY2025 | ₹0Cr | ₹0Cr | 22.1% | 0.49 | 1.41 | 15.1% |
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.