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
-2.1% = -1.9% × 0.75 × 1.51
Latest: FY2026
Profitability
Net Margin
-1.9%
14.8% →-1.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
1.05x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.51x
1.62x →1.51x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 27.4 pp over 5 years. Driven by net margin declining (14.8% → -1.9%), asset turnover declining (1.05x → 0.75x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.8% | 1.05 | 1.62 | 25.3% |
| FY2023 | ₹0Cr | ₹0Cr | 14.4% | 1.04 | 1.43 | 21.5% |
| FY2024 | ₹0Cr | ₹0Cr | 8.7% | 0.82 | 1.45 | 10.3% |
| FY2025 | ₹0Cr | ₹0Cr | 5.0% | 0.67 | 1.54 | 5.2% |
| FY2026 | ₹0Cr | ₹-0Cr | -1.9% | 0.75 | 1.51 | -2.1% |
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.