DuPont Decomposition
Why does GICRE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.7% = 17.9% × 0.26 × 2.92
Latest: FY2026
Profitability
Net Margin
17.9%
4.6% →17.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.26x
0.34x →0.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.92x
4.22x →2.92x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.1 pp over 5 years. Driven by net margin improving (4.6% → 17.9%), leverage falling (4.22x → 2.92x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.6% | 0.34 | 4.22 | 6.6% |
| FY2023 | ₹0Cr | ₹0Cr | 14.3% | 0.30 | 3.60 | 15.3% |
| FY2024 | ₹0Cr | ₹0Cr | 14.4% | 0.25 | 3.34 | 12.1% |
| FY2025 | ₹0Cr | ₹0Cr | 15.0% | 0.26 | 3.17 | 12.1% |
| FY2026 | ₹0Cr | ₹0Cr | 17.9% | 0.26 | 2.92 | 13.7% |
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.