DuPont Decomposition
Why does GOYALALUM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.3% = 3.0% × 3.14 × 1.10
Latest: FY2025
Profitability
Net Margin
3.0%
1.2% →3.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.14x
2.34x →3.14x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.10x
2.31x →1.10x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.6 pp over 4 years. Driven by net margin improving (1.2% → 3.0%), asset turnover improving (2.34x → 3.14x), leverage falling (2.31x → 1.10x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.2% | 2.34 | 2.31 | 6.7% |
| FY2023 | ₹0Cr | ₹0Cr | 3.3% | 3.02 | 1.25 | 12.4% |
| FY2024 | ₹0Cr | ₹0Cr | 3.7% | 2.88 | 1.19 | 12.8% |
| FY2025 | ₹0Cr | ₹0Cr | 3.0% | 3.14 | 1.10 | 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.