DuPont Decomposition
Why does GENUSPAPER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.6% = 0.3% × 0.77 × 2.17
Latest: FY2025
Profitability
Net Margin
0.3%
-0.0% →0.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.77x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.17x
1.96x →2.17x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~1%. Driven by leverage rising (1.96x → 2.17x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -0.0% | 0.77 | 1.96 | -0.0% |
| FY2024 | ₹0Cr | ₹0Cr | 0.5% | 0.70 | 2.09 | 0.7% |
| FY2025 | ₹0Cr | ₹0Cr | 0.3% | 0.77 | 2.17 | 0.6% |
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.