DuPont Decomposition
Why does GLOBALVECT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-3.1% = -0.1% × 0.68 × 37.20
Latest: FY2025
Profitability
Net Margin
-0.1%
-1.5% →-0.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.68x
0.47x →0.68x
Revenue per ₹ of assets
Leverage
Equity Multiplier
37.20x
17.51x →37.20x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.0 pp over 4 years. Driven by net margin improving (-1.5% → -0.1%), asset turnover improving (0.47x → 0.68x), leverage rising (17.51x → 37.20x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -1.5% | 0.47 | 17.51 | -12.1% |
| FY2023 | ₹0Cr | ₹-0Cr | -4.0% | 0.53 | 27.35 | -59.2% |
| FY2024 | ₹0Cr | ₹0Cr | 0.2% | 0.54 | 42.54 | 5.5% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.1% | 0.68 | 37.20 | -3.1% |
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.