DuPont Decomposition
Why does GREENPANEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.2% = 5.2% × 0.65 × 1.54
Latest: FY2025
Profitability
Net Margin
5.2%
15.6% →5.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.65x
0.26x →0.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.54x
1.43x →1.54x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~5%. Driven by net margin declining (15.6% → 5.2%), asset turnover improving (0.26x → 0.65x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 15.6% | 0.26 | 1.43 | 5.8% |
| FY2024 | ₹0Cr | ₹0Cr | 7.5% | 0.21 | 1.44 | 2.3% |
| FY2025 | ₹0Cr | ₹0Cr | 5.2% | 0.65 | 1.54 | 5.2% |
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.