DuPont Decomposition
Why does GEECEE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.0% = 34.6% × 0.11 × 1.53
Latest: FY2025
Profitability
Net Margin
34.6%
29.0% →34.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.11x
0.06x →0.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
1.10x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.9 pp over 3 years. Driven by net margin improving (29.0% → 34.6%), leverage rising (1.10x → 1.53x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 29.0% | 0.06 | 1.10 | 2.1% |
| FY2024 | ₹0Cr | ₹0Cr | 38.5% | 0.13 | 1.13 | 5.8% |
| FY2025 | ₹0Cr | ₹0Cr | 34.6% | 0.11 | 1.53 | 6.0% |
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.