DuPont Decomposition
Why does GESHIP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.4% = 44.4% × 0.30 × 1.24
Latest: FY2025
Profitability
Net Margin
44.4%
49.6% →44.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.30x
0.10x →0.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.24x
1.48x →1.24x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.4 pp over 3 years. Driven by net margin declining (49.6% → 44.4%), asset turnover improving (0.10x → 0.30x), leverage falling (1.48x → 1.24x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 49.6% | 0.10 | 1.48 | 7.0% |
| FY2024 | ₹0Cr | ₹0Cr | 62.9% | 0.08 | 1.32 | 7.0% |
| FY2025 | ₹0Cr | ₹0Cr | 44.4% | 0.30 | 1.24 | 16.4% |
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.