DuPont Decomposition
Why does GMBREW earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.5% = 21.0% × 0.61 × 1.14
Latest: FY2026
Profitability
Net Margin
21.0%
4.3% →21.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.61x
3.02x →0.61x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.14x
1.13x →1.14x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~15%. Driven by net margin improving (4.3% → 21.0%), asset turnover declining (3.02x → 0.61x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.3% | 3.02 | 1.13 | 14.7% |
| FY2024 | ₹0Cr | ₹0Cr | 6.3% | 2.63 | 1.12 | 18.4% |
| FY2025 | ₹0Cr | ₹0Cr | 20.3% | 0.58 | 1.17 | 13.8% |
| FY2026 | ₹0Cr | ₹0Cr | 21.0% | 0.61 | 1.14 | 14.5% |
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.