DuPont Decomposition
Why does GEMAROMA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.3% = 0.4% × 0.57 × 1.43
Latest: FY2026
Profitability
Net Margin
0.4%
10.0% →0.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.57x
1.30x →0.57x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.43x
1.73x →1.43x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 22.2 pp over 5 years. Driven by net margin declining (10.0% → 0.4%), asset turnover declining (1.30x → 0.57x), leverage falling (1.73x → 1.43x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.0% | 1.30 | 1.73 | 22.6% |
| FY2023 | ₹0Cr | ₹0Cr | 10.7% | 1.42 | 1.65 | 24.9% |
| FY2024 | ₹0Cr | ₹0Cr | 11.2% | 1.21 | 1.60 | 21.7% |
| FY2025 | ₹0Cr | ₹0Cr | 10.6% | 0.94 | 1.88 | 18.8% |
| FY2026 | ₹0Cr | ₹0Cr | 0.4% | 0.57 | 1.43 | 0.3% |
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.