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
23.7% = 1.3% × 4.78 × 3.94
Latest: FY2025
Profitability
Net Margin
1.3%
1.4% →1.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
4.78x
1.24x →4.78x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.94x
3.26x →3.94x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 17.9 pp over 3 years. Driven by asset turnover improving (1.24x → 4.78x), leverage rising (3.26x → 3.94x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.4% | 1.24 | 3.26 | 5.8% |
| FY2024 | ₹0Cr | ₹0Cr | 1.1% | 1.23 | 4.08 | 5.6% |
| FY2025 | ₹0Cr | ₹0Cr | 1.3% | 4.78 | 3.94 | 23.7% |
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.