DuPont Decomposition
Why does GOLDIAM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.7% = 15.0% × 0.87 × 1.20
Latest: FY2025
Profitability
Net Margin
15.0%
16.0% →15.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.87x
0.76x →0.87x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.20x
1.20x →1.20x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.2 pp over 3 years. Driven by asset turnover improving (0.76x → 0.87x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 16.0% | 0.76 | 1.20 | 14.6% |
| FY2024 | ₹0Cr | ₹0Cr | 15.1% | 0.82 | 1.16 | 14.4% |
| FY2025 | ₹0Cr | ₹0Cr | 15.0% | 0.87 | 1.20 | 15.7% |
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.