DuPont Decomposition
Why does GLENMARK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.8% = 8.0% × 0.82 × 1.81
Latest: FY2025
Profitability
Net Margin
8.0%
-11.9% →8.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.82x
0.17x →0.82x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.81x
2.04x →1.81x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 16.1 pp over 3 years. Driven by net margin improving (-11.9% → 8.0%), asset turnover improving (0.17x → 0.82x), leverage falling (2.04x → 1.81x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -11.9% | 0.17 | 2.04 | -4.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -39.6% | 0.21 | 1.83 | -15.5% |
| FY2025 | ₹0Cr | ₹0Cr | 8.0% | 0.82 | 1.81 | 11.8% |
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.