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
10.0% = 3.3% × 1.40 × 2.19
Latest: FY2026
Profitability
Net Margin
3.3%
6.1% →3.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.40x
1.35x →1.40x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.19x
2.15x →2.19x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.6 pp over 5 years. Driven by net margin declining (6.1% → 3.3%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.1% | 1.35 | 2.15 | 17.6% |
| FY2023 | ₹0Cr | ₹0Cr | 5.5% | 0.99 | 2.61 | 14.2% |
| FY2024 | ₹0Cr | ₹0Cr | 3.2% | 1.31 | 2.35 | 9.9% |
| FY2025 | ₹0Cr | ₹0Cr | 3.7% | 1.27 | 2.41 | 11.3% |
| FY2026 | ₹0Cr | ₹0Cr | 3.3% | 1.40 | 2.19 | 10.0% |
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.