DuPont Decomposition
Why does GILLETTE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
42.4% = 15.6% × 1.44 × 1.88
Latest: FY2025
Profitability
Net Margin
15.6%
15.4% →15.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.44x
1.44x →1.44x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.88x
1.77x →1.88x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.0 pp over 4 years.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.4% | 1.44 | 1.77 | 39.3% |
| FY2023 | ₹0Cr | ₹0Cr | 12.8% | 1.39 | 1.88 | 33.6% |
| FY2024 | ₹0Cr | ₹0Cr | 14.4% | 1.29 | 1.94 | 36.0% |
| FY2025 | ₹0Cr | ₹0Cr | 15.6% | 1.44 | 1.88 | 42.4% |
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.