DuPont Decomposition
Why does GSFC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.9% = 10.2% × 0.40 × 1.18
Latest: FY2025
Profitability
Net Margin
10.2%
9.4% →10.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.40x
0.17x →0.40x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.18x
1.16x →1.18x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.0 pp over 3 years. Driven by asset turnover improving (0.17x → 0.40x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.4% | 0.17 | 1.16 | 1.9% |
| FY2024 | ₹0Cr | ₹0Cr | 1.2% | 0.13 | 1.18 | 0.2% |
| FY2025 | ₹0Cr | ₹0Cr | 10.2% | 0.40 | 1.18 | 4.9% |
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.