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
18.8% = 10.8% × 0.93 × 1.88
Latest: FY2025
Profitability
Net Margin
10.8%
10.0% →10.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.93x
1.30x →0.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.88x
1.73x →1.88x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.8 pp over 4 years. Driven by asset turnover declining (1.30x → 0.93x).
Historical Decomposition
Last 4 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 | 10.8% | 0.93 | 1.88 | 18.8% |
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.