DuPont Decomposition
Why does GINNIFILA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.1% = 1.1% × 1.11 × 1.69
Latest: FY2025
Profitability
Net Margin
1.1%
4.5% →1.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.11x
1.38x →1.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.69x
2.65x →1.69x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.4 pp over 4 years. Driven by net margin declining (4.5% → 1.1%), asset turnover declining (1.38x → 1.11x), leverage falling (2.65x → 1.69x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.5% | 1.38 | 2.65 | 16.5% |
| FY2023 | ₹0Cr | ₹-0Cr | -3.9% | 0.57 | 2.28 | -5.1% |
| FY2024 | ₹0Cr | ₹-0Cr | -24.6% | 0.97 | 1.82 | -43.4% |
| FY2025 | ₹0Cr | ₹0Cr | 1.1% | 1.11 | 1.69 | 2.1% |
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.