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
8.4% = 3.4% × 1.21 × 2.06
Latest: FY2026
Profitability
Net Margin
3.4%
11.9% →3.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.21x
1.28x →1.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.06x
1.60x →2.06x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 15.8 pp over 5 years. Driven by net margin declining (11.9% → 3.4%), leverage rising (1.60x → 2.06x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.9% | 1.28 | 1.60 | 24.3% |
| FY2023 | ₹0Cr | ₹0Cr | 5.8% | 1.33 | 1.79 | 13.8% |
| FY2024 | ₹0Cr | ₹0Cr | 4.0% | 1.37 | 1.82 | 9.9% |
| FY2025 | ₹0Cr | ₹0Cr | 0.9% | 1.21 | 2.11 | 2.4% |
| FY2026 | ₹0Cr | ₹0Cr | 3.4% | 1.21 | 2.06 | 8.4% |
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.