DuPont Decomposition
Why does GLOBE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.5% = 1.7% × 1.42 × 2.64
Latest: FY2025
Profitability
Net Margin
1.7%
1.4% →1.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.42x
1.46x →1.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.64x
5.20x →2.64x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.8 pp over 4 years. Driven by leverage falling (5.20x → 2.64x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.4% | 1.46 | 5.20 | 10.3% |
| FY2023 | ₹0Cr | ₹0Cr | 1.2% | 1.60 | 4.40 | 8.3% |
| FY2024 | ₹0Cr | ₹0Cr | 2.0% | 1.42 | 2.69 | 7.6% |
| FY2025 | ₹0Cr | ₹0Cr | 1.7% | 1.42 | 2.64 | 6.5% |
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.