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
15.7% = 8.9% × 1.02 × 1.72
Latest: FY2026
Profitability
Net Margin
8.9%
12.4% →8.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.02x
1.04x →1.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.72x
2.04x →1.72x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.7 pp over 5 years. Driven by net margin declining (12.4% → 8.9%), leverage falling (2.04x → 1.72x).
Historical Decomposition
Last 5 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 | 12.0% | 1.16 | 1.58 | 21.9% |
| FY2025 | ₹0Cr | ₹0Cr | 12.3% | 1.06 | 1.55 | 20.1% |
| FY2026 | ₹0Cr | ₹0Cr | 8.9% | 1.02 | 1.72 | 15.7% |
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.