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
25.0% = 7.9% × 1.59 × 1.99
Latest: FY2025
Profitability
Net Margin
7.9%
6.1% →7.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.59x
0.99x →1.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.99x
5.48x →1.99x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.2 pp over 3 years. Driven by net margin improving (6.1% → 7.9%), asset turnover improving (0.99x → 1.59x), leverage falling (5.48x → 1.99x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.1% | 0.99 | 5.48 | 33.2% |
| FY2024 | ₹0Cr | ₹0Cr | 9.4% | 1.77 | 2.12 | 35.2% |
| FY2025 | ₹0Cr | ₹0Cr | 7.9% | 1.59 | 1.99 | 25.0% |
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.