DuPont Decomposition
Why does GILLANDERS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.7% = 2.2% × 0.78 × 2.14
Latest: FY2026
Profitability
Net Margin
2.2%
4.1% →2.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.78x
0.67x →0.78x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.14x
2.21x →2.14x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.4 pp over 5 years. Driven by net margin declining (4.1% → 2.2%), asset turnover improving (0.67x → 0.78x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.1% | 0.67 | 2.21 | 6.1% |
| FY2023 | ₹0Cr | ₹0Cr | 3.3% | 0.81 | 1.99 | 5.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -13.6% | 0.75 | 2.19 | -22.4% |
| FY2025 | ₹0Cr | ₹0Cr | 6.0% | 0.86 | 2.10 | 10.9% |
| FY2026 | ₹0Cr | ₹0Cr | 2.2% | 0.78 | 2.14 | 3.7% |
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.