DuPont Decomposition
Why does GRMOVER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.2% = 4.5% × 1.48 × 2.13
Latest: FY2025
Profitability
Net Margin
4.5%
7.5% →4.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.48x
1.66x →1.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.13x
3.23x →2.13x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 26.4 pp over 4 years. Driven by net margin declining (7.5% → 4.5%), asset turnover declining (1.66x → 1.48x), leverage falling (3.23x → 2.13x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.5% | 1.66 | 3.23 | 40.6% |
| FY2023 | ₹0Cr | ₹0Cr | 4.6% | 1.73 | 2.86 | 22.9% |
| FY2024 | ₹0Cr | ₹0Cr | 4.6% | 1.67 | 2.33 | 18.1% |
| FY2025 | ₹0Cr | ₹0Cr | 4.5% | 1.48 | 2.13 | 14.2% |
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.