DuPont Decomposition
Why does GRAUWEIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.7% = 14.4% × 0.85 × 1.37
Latest: FY2025
Profitability
Net Margin
14.4%
10.6% →14.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.85x
0.90x →0.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.37x
1.41x →1.37x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.2 pp over 4 years. Driven by net margin improving (10.6% → 14.4%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.6% | 0.90 | 1.41 | 13.5% |
| FY2023 | ₹0Cr | ₹0Cr | 12.1% | 0.98 | 1.40 | 16.6% |
| FY2024 | ₹0Cr | ₹0Cr | 14.3% | 0.91 | 1.40 | 18.2% |
| FY2025 | ₹0Cr | ₹0Cr | 14.4% | 0.85 | 1.37 | 16.7% |
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.