DuPont Decomposition
Why does GODAVARIB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-3.0% = -1.3% × 0.96 × 2.50
Latest: FY2025
Profitability
Net Margin
-1.3%
1.1% →-1.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
0.98x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.50x
3.66x →2.50x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.0 pp over 4 years. Driven by net margin declining (1.1% → -1.2%), leverage falling (3.66x → 2.50x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.1% | 0.98 | 3.66 | 4.0% |
| FY2023 | ₹0Cr | ₹0Cr | 1.0% | 1.16 | 3.56 | 4.0% |
| FY2024 | ₹0Cr | ₹0Cr | 0.7% | 0.85 | 3.98 | 2.5% |
| FY2025 | ₹0Cr | ₹-0Cr | -1.3% | 0.96 | 2.50 | -3.0% |
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.