DuPont Decomposition
Why does GOACARBON earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-10.1% = -4.3% × 0.96 × 2.44
Latest: FY2025
Profitability
Net Margin
-4.3%
1.7% →-4.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
0.41x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.44x
4.13x →2.44x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.0 pp over 3 years. Driven by net margin declining (1.7% → -4.3%), asset turnover improving (0.41x → 0.96x), leverage falling (4.13x → 2.44x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.7% | 0.41 | 4.13 | 2.8% |
| FY2024 | ₹0Cr | ₹0Cr | 5.3% | 0.29 | 2.48 | 3.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -4.3% | 0.96 | 2.44 | -10.1% |
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.