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
10.9% = 6.1% × 0.85 × 2.10
Latest: FY2025
Profitability
Net Margin
6.1%
3.3% →6.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.85x
0.82x →0.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.10x
1.99x →2.10x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.5 pp over 3 years. Driven by net margin improving (3.3% → 6.1%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.3% | 0.82 | 1.99 | 5.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -13.4% | 0.76 | 2.19 | -22.4% |
| FY2025 | ₹0Cr | ₹0Cr | 6.1% | 0.85 | 2.10 | 10.9% |
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.