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
7.6% = 4.4% × 1.01 × 1.70
Latest: FY2025
Profitability
Net Margin
4.4%
9.0% →4.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.01x
0.39x →1.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.70x
1.51x →1.70x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.3 pp over 3 years. Driven by net margin declining (9.0% → 4.4%), asset turnover improving (0.39x → 1.01x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.0% | 0.39 | 1.51 | 5.3% |
| FY2024 | ₹0Cr | ₹0Cr | 5.5% | 0.30 | 2.12 | 3.4% |
| FY2025 | ₹0Cr | ₹0Cr | 4.4% | 1.01 | 1.70 | 7.6% |
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.