DuPont Decomposition
Why does GRWRHITECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.0% = 15.9% × 0.77 × 1.13
Latest: FY2025
Profitability
Net Margin
15.9%
12.3% →15.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.16x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.13x
1.19x →1.13x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.6 pp over 3 years. Driven by net margin improving (12.3% → 15.9%), asset turnover improving (0.16x → 0.77x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 12.3% | 0.16 | 1.19 | 2.3% |
| FY2024 | ₹0Cr | ₹0Cr | 12.9% | 0.19 | 1.14 | 2.8% |
| FY2025 | ₹0Cr | ₹0Cr | 15.9% | 0.77 | 1.13 | 14.0% |
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.