DuPont Decomposition
Why does GREENPOWER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.6% = 15.3% × 0.15 × 1.55
Latest: FY2025
Profitability
Net Margin
15.3%
-42.7% →15.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.15x
0.03x →0.15x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.55x
3.23x →1.55x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.2 pp over 3 years. Driven by net margin improving (-42.7% → 15.2%), asset turnover improving (0.03x → 0.15x), leverage falling (3.23x → 1.55x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -42.7% | 0.03 | 3.23 | -3.6% |
| FY2024 | ₹0.1Cr | ₹-0Cr | -23.0% | 0.01 | 1.09 | -0.1% |
| FY2025 | ₹0Cr | ₹0Cr | 15.3% | 0.15 | 1.55 | 3.6% |
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.