DuPont Decomposition
Why does GUJGASLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.5% = 7.0% × 1.29 × 1.49
Latest: FY2025
Profitability
Net Margin
7.0%
7.9% →7.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.29x
1.71x →1.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.49x
1.70x →1.49x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.3 pp over 4 years. Driven by asset turnover declining (1.71x → 1.29x), leverage falling (1.70x → 1.49x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.9% | 1.71 | 1.70 | 22.9% |
| FY2023 | ₹0Cr | ₹0Cr | 9.2% | 1.53 | 1.55 | 21.8% |
| FY2024 | ₹0Cr | ₹0Cr | 7.3% | 1.33 | 1.51 | 14.8% |
| FY2025 | ₹0Cr | ₹0Cr | 7.0% | 1.29 | 1.49 | 13.5% |
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.