DuPont Decomposition
Why does GRAPHITE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.9% = 18.6% × 0.34 × 1.23
Latest: FY2025
Profitability
Net Margin
18.6%
3.6% →18.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.34x
0.13x →0.34x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.31x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.3 pp over 3 years. Driven by net margin improving (3.6% → 18.6%), asset turnover improving (0.13x → 0.34x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.6% | 0.13 | 1.31 | 0.6% |
| FY2024 | ₹0Cr | ₹0Cr | 2.4% | 0.11 | 1.21 | 0.3% |
| FY2025 | ₹0Cr | ₹0Cr | 18.6% | 0.34 | 1.23 | 7.9% |
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.