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
7.5% = 3.1% × 1.19 × 2.02
Latest: FY2026
Profitability
Net Margin
3.1%
-2.1% →3.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.19x
1.03x →1.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.02x
2.19x →2.02x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.2 pp over 5 years. Driven by net margin improving (-2.1% → 3.1%), asset turnover improving (1.03x → 1.19x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -2.1% | 1.03 | 2.19 | -4.7% |
| FY2023 | ₹0Cr | ₹0Cr | 2.9% | 0.98 | 1.72 | 4.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -5.2% | 1.05 | 1.71 | -9.4% |
| FY2025 | ₹0Cr | ₹0Cr | 2.0% | 1.14 | 1.82 | 4.2% |
| FY2026 | ₹0Cr | ₹0Cr | 3.1% | 1.19 | 2.02 | 7.5% |
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.