DuPont Decomposition
Why does GPTHEALTH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.1% = 12.3% × 1.06 × 1.55
Latest: FY2025
Profitability
Net Margin
12.3%
12.4% →12.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.06x
1.04x →1.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.55x
2.04x →1.55x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.2 pp over 4 years. Driven by leverage falling (2.04x → 1.55x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.4% | 1.04 | 2.04 | 26.3% |
| FY2023 | ₹0Cr | ₹0Cr | 10.8% | 1.10 | 1.98 | 23.6% |
| FY2024 | ₹0Cr | ₹0Cr | 12.9% | 0.29 | 1.58 | 5.9% |
| FY2025 | ₹0Cr | ₹0Cr | 12.3% | 1.06 | 1.55 | 20.1% |
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.