DuPont Decomposition
Why does GOKUL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.3% = 0.4% × 4.57 × 2.23
Latest: FY2025
Profitability
Net Margin
0.4%
0.9% →0.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
4.57x
3.62x →4.57x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.23x
2.77x →2.23x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.4 pp over 4 years. Driven by asset turnover improving (3.62x → 4.57x), leverage falling (2.77x → 2.23x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.9% | 3.62 | 2.77 | 8.7% |
| FY2023 | ₹0Cr | ₹0Cr | 0.8% | 3.70 | 2.57 | 7.4% |
| FY2024 | ₹0Cr | ₹0Cr | 0.1% | 4.08 | 2.24 | 0.6% |
| FY2025 | ₹0Cr | ₹0Cr | 0.4% | 4.57 | 2.23 | 4.3% |
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.