DuPont Decomposition
Why does GOCLCORP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.0% = 28.7% × 0.18 × 1.97
Latest: FY2025
Profitability
Net Margin
28.7%
35.8% →28.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.18x
0.15x →0.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.97x
2.82x →1.97x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.3 pp over 4 years. Driven by net margin declining (35.8% → 28.7%), leverage falling (2.82x → 1.97x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 35.8% | 0.15 | 2.82 | 15.3% |
| FY2023 | ₹0Cr | ₹0Cr | 23.2% | 0.26 | 2.49 | 15.0% |
| FY2024 | ₹0Cr | ₹0Cr | 8.0% | 0.21 | 2.04 | 3.4% |
| FY2025 | ₹0Cr | ₹0Cr | 28.7% | 0.18 | 1.97 | 10.0% |
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.