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
6.0% = 23.7% × 0.17 × 1.50
Latest: FY2026
Profitability
Net Margin
23.7%
13.6% →23.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.17x
0.14x →0.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.50x
3.74x →1.50x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.1 pp over 5 years. Driven by net margin improving (13.6% → 23.7%), leverage falling (3.74x → 1.50x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 13.6% | 0.14 | 3.74 | 7.2% |
| FY2023 | ₹0Cr | ₹0Cr | 14.1% | 0.14 | 3.23 | 6.5% |
| FY2024 | ₹0Cr | ₹0Cr | 14.2% | 0.16 | 2.05 | 4.6% |
| FY2025 | ₹0Cr | ₹0Cr | 14.9% | 0.16 | 1.55 | 3.6% |
| FY2026 | ₹0Cr | ₹0Cr | 23.7% | 0.17 | 1.50 | 6.0% |
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.