DuPont Decomposition
Why does GSPCROP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.7% = 6.5% × 0.98 × 2.00
Latest: FY2026
Profitability
Net Margin
6.5%
1.8% →6.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.98x
1.06x →0.98x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.00x
3.11x →2.00x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.8 pp over 4 years. Driven by net margin improving (1.8% → 6.5%), leverage falling (3.11x → 2.00x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.8% | 1.06 | 3.11 | 5.9% |
| FY2024 | ₹0Cr | ₹0Cr | 5.3% | 1.17 | 2.65 | 16.6% |
| FY2025 | ₹0Cr | ₹0Cr | 6.5% | 1.05 | 2.73 | 18.5% |
| FY2026 | ₹0Cr | ₹0Cr | 6.5% | 0.98 | 2.00 | 12.7% |
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.