DuPont Decomposition
Why does GOODLUCK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.2% = 4.2% × 1.54 × 1.88
Latest: FY2025
Profitability
Net Margin
4.2%
3.7% →4.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.54x
0.52x →1.54x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.88x
2.37x →1.88x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.7 pp over 3 years. Driven by asset turnover improving (0.52x → 1.54x), leverage falling (2.37x → 1.88x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.7% | 0.52 | 2.37 | 4.5% |
| FY2024 | ₹0Cr | ₹0Cr | 4.1% | 0.44 | 1.77 | 3.2% |
| FY2025 | ₹0Cr | ₹0Cr | 4.2% | 1.54 | 1.88 | 12.2% |
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.