DuPont Decomposition
Why does GLOBAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
25.6% = 39.0% × 0.62 × 1.06
Latest: FY2025
Profitability
Net Margin
39.0%
27.5% →39.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.62x
0.75x →0.62x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.06x
1.12x →1.06x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.4 pp over 4 years. Driven by net margin improving (27.5% → 39.0%), asset turnover declining (0.75x → 0.62x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 27.5% | 0.75 | 1.12 | 23.2% |
| FY2023 | ₹0Cr | ₹0Cr | 36.5% | 0.84 | 1.13 | 34.6% |
| FY2024 | ₹0Cr | ₹0Cr | 45.5% | 0.76 | 1.10 | 38.0% |
| FY2025 | ₹0Cr | ₹0Cr | 39.0% | 0.62 | 1.06 | 25.6% |
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.