DuPont Decomposition
Why does GODFRYPHLP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
24.6% = 24.0% × 0.76 × 1.34
Latest: FY2026
Profitability
Net Margin
24.0%
16.5% →24.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.76x
0.65x →0.76x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.34x
1.40x →1.34x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.6 pp over 5 years. Driven by net margin improving (16.5% → 24.0%), asset turnover improving (0.65x → 0.76x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.5% | 0.65 | 1.40 | 15.0% |
| FY2023 | ₹0Cr | ₹0Cr | 19.6% | 0.71 | 1.40 | 19.5% |
| FY2024 | ₹0Cr | ₹0Cr | 22.3% | 0.68 | 1.38 | 20.9% |
| FY2025 | ₹0Cr | ₹0Cr | 19.2% | 0.80 | 1.33 | 20.4% |
| FY2026 | ₹0Cr | ₹0Cr | 24.0% | 0.76 | 1.34 | 24.6% |
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.