DuPont Decomposition
Why does GOKEX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.6% = 2.5% × 0.92 × 2.02
Latest: FY2026
Profitability
Net Margin
2.5%
6.5% →2.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.92x
1.48x →0.92x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.02x
1.71x →2.02x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.9 pp over 5 years. Driven by net margin declining (6.5% → 2.5%), asset turnover declining (1.48x → 0.92x), leverage rising (1.71x → 2.02x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.5% | 1.48 | 1.71 | 16.5% |
| FY2023 | ₹0Cr | ₹0Cr | 8.4% | 1.54 | 1.51 | 19.5% |
| FY2024 | ₹0Cr | ₹0Cr | 6.0% | 0.80 | 2.12 | 10.1% |
| FY2025 | ₹0Cr | ₹0Cr | 4.1% | 1.09 | 1.70 | 7.6% |
| FY2026 | ₹0Cr | ₹0Cr | 2.5% | 0.92 | 2.02 | 4.6% |
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.