DuPont Decomposition
Why does GEEKAYWIRE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.5% = 6.8% × 1.26 × 2.04
Latest: FY2026
Profitability
Net Margin
6.8%
3.5% →6.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.26x
1.29x →1.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.04x
3.85x →2.04x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~18%. Driven by net margin improving (3.5% → 6.8%), leverage falling (3.85x → 2.04x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.5% | 1.29 | 3.85 | 17.3% |
| FY2023 | ₹0Cr | ₹0Cr | 6.1% | 1.82 | 2.98 | 33.2% |
| FY2024 | ₹0Cr | ₹0Cr | 9.4% | 1.77 | 2.12 | 35.2% |
| FY2025 | ₹0Cr | ₹0Cr | 7.9% | 1.59 | 1.99 | 25.0% |
| FY2026 | ₹0Cr | ₹0Cr | 6.8% | 1.26 | 2.04 | 17.5% |
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.