DuPont Decomposition
Why does GOPAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.4% = 4.9% × 2.10 × 1.49
Latest: FY2026
Profitability
Net Margin
4.9%
3.1% →4.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.10x
3.38x →2.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.49x
2.25x →1.49x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.0 pp over 5 years. Driven by net margin improving (3.1% → 4.9%), asset turnover declining (3.38x → 2.10x), leverage falling (2.25x → 1.49x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.1% | 3.38 | 2.25 | 23.4% |
| FY2023 | ₹0Cr | ₹0Cr | 8.1% | 3.02 | 1.59 | 38.6% |
| FY2024 | ₹0Cr | ₹0Cr | 7.2% | 2.59 | 1.38 | 25.5% |
| FY2025 | ₹0Cr | ₹0Cr | 1.3% | 2.72 | 1.33 | 4.7% |
| FY2026 | ₹0Cr | ₹0Cr | 4.9% | 2.10 | 1.49 | 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.