DuPont Decomposition
Why does GLOBALE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-14.6% = -9.7% × 0.57 × 2.62
Latest: FY2026
Profitability
Net Margin
-9.7%
-1.9% →-9.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.57x
1.29x →0.57x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.62x
4.68x →2.62x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.1 pp over 4 years. Driven by net margin declining (-1.9% → -9.7%), asset turnover declining (1.29x → 0.57x), leverage falling (4.68x → 2.62x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -1.9% | 1.29 | 4.68 | -11.5% |
| FY2024 | ₹0Cr | ₹0Cr | 0.9% | 1.47 | 3.14 | 4.3% |
| FY2025 | ₹0Cr | ₹-0Cr | -1.6% | 2.09 | 2.14 | -7.0% |
| FY2026 | ₹0Cr | ₹-0Cr | -9.7% | 0.57 | 2.62 | -14.6% |
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.