DuPont Decomposition
Why does GREENPLY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.3% = 3.7% × 1.27 × 2.41
Latest: FY2025
Profitability
Net Margin
3.7%
2.4% →3.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.27x
0.28x →1.27x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.41x
2.61x →2.41x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.6 pp over 3 years. Driven by net margin improving (2.4% → 3.7%), asset turnover improving (0.28x → 1.27x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.4% | 0.28 | 2.61 | 1.7% |
| FY2024 | ₹0Cr | ₹0Cr | 4.7% | 0.36 | 2.35 | 4.0% |
| FY2025 | ₹0Cr | ₹0Cr | 3.7% | 1.27 | 2.41 | 11.3% |
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.