DuPont Decomposition
Why does GBGLOBAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
27.6% = 55.5% × 0.22 × 2.26
Latest: FY2025
Profitability
Net Margin
55.5%
1516.8% →55.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.22x
0.12x →0.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.26x
2.90x →2.26x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 498.2 pp over 4 years. Driven by net margin declining (1516.8% → 55.5%), leverage falling (2.90x → 2.26x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1516.8% | 0.12 | 2.90 | 525.7% |
| FY2023 | ₹0Cr | ₹0Cr | 20.8% | 0.23 | 2.31 | 11.1% |
| FY2024 | ₹0Cr | ₹0Cr | 18.3% | 0.33 | 2.37 | 14.4% |
| FY2025 | ₹0Cr | ₹0Cr | 55.5% | 0.22 | 2.26 | 27.6% |
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.