DuPont Decomposition
Why does GOLDTECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.3% = 11.1% × 0.70 × 1.33
Latest: FY2025
Profitability
Net Margin
11.1%
0.8% →11.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.70x
0.69x →0.70x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.33x
1.30x →1.33x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.6 pp over 4 years. Driven by net margin improving (0.8% → 11.1%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.8% | 0.69 | 1.30 | 0.8% |
| FY2023 | ₹0Cr | ₹0Cr | 0.5% | 0.96 | 1.41 | 0.7% |
| FY2024 | ₹0Cr | ₹-0Cr | -2.3% | 0.89 | 1.57 | -3.3% |
| FY2025 | ₹0Cr | ₹0Cr | 11.1% | 0.70 | 1.33 | 10.3% |
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.