DuPont Decomposition
Why does GLOSTERLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.7% = 1.3% × 0.57 × 2.31
Latest: FY2026
Profitability
Net Margin
1.3%
8.9% →1.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.57x
0.59x →0.57x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.31x
1.16x →2.31x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.4 pp over 5 years. Driven by net margin declining (8.9% → 1.3%), leverage rising (1.16x → 2.31x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.9% | 0.59 | 1.16 | 6.1% |
| FY2023 | ₹0Cr | ₹0Cr | 7.8% | 0.54 | 1.21 | 5.0% |
| FY2024 | ₹0Cr | ₹0Cr | 3.8% | 0.44 | 1.32 | 2.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -1.8% | 0.36 | 1.86 | -1.2% |
| FY2026 | ₹0Cr | ₹0Cr | 1.3% | 0.57 | 2.31 | 1.7% |
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.