DuPont Decomposition
Why does GOKULAGRO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
26.0% = 1.5% × 4.89 × 3.46
Latest: FY2026
Profitability
Net Margin
1.5%
1.2% →1.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
4.89x
6.00x →4.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.46x
3.65x →3.46x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~26%. Driven by asset turnover declining (6.00x → 4.89x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.2% | 6.00 | 3.65 | 26.1% |
| FY2023 | ₹0Cr | ₹0Cr | 1.2% | 5.04 | 3.26 | 20.4% |
| FY2024 | ₹0Cr | ₹0Cr | 1.0% | 4.30 | 4.08 | 17.3% |
| FY2025 | ₹0Cr | ₹0Cr | 1.3% | 4.79 | 3.94 | 23.7% |
| FY2026 | ₹0Cr | ₹0Cr | 1.5% | 4.89 | 3.46 | 26.0% |
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.