DuPont Decomposition
Why does GSLSU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-11.3% = -13.1% × 0.43 × 2.00
Latest: FY2026
Profitability
Net Margin
-13.1%
18.8% →-13.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.43x
0.80x →0.43x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.00x
1.76x →2.00x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 37.8 pp over 5 years. Driven by net margin declining (18.8% → -13.1%), asset turnover declining (0.80x → 0.43x), leverage rising (1.76x → 2.00x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 18.8% | 0.80 | 1.76 | 26.6% |
| FY2023 | ₹0Cr | ₹0Cr | 13.7% | 0.38 | 1.77 | 9.3% |
| FY2024 | ₹0Cr | ₹0Cr | 8.4% | 0.43 | 1.58 | 5.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -13.7% | 0.37 | 1.84 | -9.4% |
| FY2026 | ₹0Cr | ₹-0Cr | -13.1% | 0.43 | 2.00 | -11.3% |
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.