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
15.4% = 17.5% × 0.72 × 1.23
Latest: FY2026
Profitability
Net Margin
17.5%
15.3% →17.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.72x
1.09x →0.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.22x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.8 pp over 5 years. Driven by net margin improving (15.3% → 17.5%), asset turnover declining (1.09x → 0.72x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.3% | 1.09 | 1.22 | 20.2% |
| FY2023 | ₹0Cr | ₹0Cr | 15.8% | 0.76 | 1.20 | 14.4% |
| FY2024 | ₹0Cr | ₹0Cr | 15.1% | 0.82 | 1.16 | 14.4% |
| FY2025 | ₹0Cr | ₹0Cr | 15.0% | 0.87 | 1.21 | 15.8% |
| FY2026 | ₹0Cr | ₹0Cr | 17.5% | 0.72 | 1.23 | 15.4% |
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.