DuPont Decomposition
Why does GNA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.7% = 8.1% × 0.95 × 1.51
Latest: FY2026
Profitability
Net Margin
8.1%
7.1% →8.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.95x
1.19x →0.95x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.51x
1.75x →1.51x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.3 pp over 5 years. Driven by asset turnover declining (1.19x → 0.95x), leverage falling (1.75x → 1.51x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.1% | 1.19 | 1.75 | 14.9% |
| FY2023 | ₹0Cr | ₹0Cr | 8.3% | 1.33 | 1.64 | 18.2% |
| FY2024 | ₹0Cr | ₹0Cr | 6.7% | 1.22 | 1.52 | 12.5% |
| FY2025 | ₹0Cr | ₹0Cr | 7.1% | 1.11 | 1.52 | 11.9% |
| FY2026 | ₹0Cr | ₹0Cr | 8.1% | 0.95 | 1.51 | 11.7% |
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.