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%
4.4% →0.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.73x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.17x
1.60x →2.17x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.6 pp over 4 years. Driven by net margin declining (4.4% → 0.3%), leverage rising (1.60x → 2.17x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.4% | 0.73 | 1.60 | 5.2% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.6% | 0.77 | 1.96 | -2.4% |
| 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.