DuPont Decomposition
Why does GEOJITFSL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.5% = 28.7% × 0.29 × 1.64
Latest: FY2025
Profitability
Net Margin
28.7%
27.2% →28.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.29x
0.08x →0.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.64x
1.66x →1.64x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.7 pp over 3 years. Driven by net margin improving (27.2% → 28.7%), asset turnover improving (0.08x → 0.29x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 27.2% | 0.08 | 1.66 | 3.8% |
| FY2024 | ₹0Cr | ₹0Cr | 24.9% | 0.10 | 2.22 | 5.7% |
| FY2025 | ₹0Cr | ₹0Cr | 28.7% | 0.29 | 1.64 | 13.5% |
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.