DuPont Decomposition
Why does GULFOILLUB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
24.6% = 9.9% × 1.31 × 1.89
Latest: FY2025
Profitability
Net Margin
9.9%
9.7% →9.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.31x
1.19x →1.31x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.89x
1.76x →1.89x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.4 pp over 4 years. Driven by asset turnover improving (1.19x → 1.31x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.7% | 1.19 | 1.76 | 20.2% |
| FY2023 | ₹0Cr | ₹0Cr | 7.8% | 1.44 | 1.76 | 19.7% |
| FY2024 | ₹0Cr | ₹0Cr | 9.3% | 1.37 | 1.86 | 23.8% |
| FY2025 | ₹0Cr | ₹0Cr | 9.9% | 1.31 | 1.89 | 24.6% |
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.