DuPont Decomposition
Why does GLOBUSSPR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.4% = 0.9% × 1.21 × 2.11
Latest: FY2025
Profitability
Net Margin
0.9%
4.3% →0.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.21x
1.77x →1.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.11x
1.79x →2.11x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.4 pp over 3 years. Driven by net margin declining (4.3% → 0.9%), asset turnover declining (1.77x → 1.21x), leverage rising (1.79x → 2.11x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.3% | 1.77 | 1.79 | 13.8% |
| FY2024 | ₹0Cr | ₹0Cr | 3.0% | 1.78 | 1.82 | 9.9% |
| FY2025 | ₹0Cr | ₹0Cr | 0.9% | 1.21 | 2.11 | 2.4% |
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.