DuPont Decomposition
Why does GREAVESCOT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.7% = 2.0% × 1.11 × 1.61
Latest: FY2025
Profitability
Net Margin
2.0%
2.6% →2.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.11x
0.99x →1.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.61x
1.72x →1.61x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~4%. Driven by asset turnover improving (0.99x → 1.11x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.6% | 0.99 | 1.72 | 4.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -13.9% | 1.07 | 1.71 | -25.5% |
| FY2025 | ₹0Cr | ₹0Cr | 2.0% | 1.11 | 1.61 | 3.7% |
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.