DuPont Decomposition
Why does GULFPETRO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.5% = 4.1% × 1.49 × 1.21
Latest: FY2026
Profitability
Net Margin
4.1%
2.6% →4.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.49x
2.22x →1.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.29x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~7%. Driven by net margin improving (2.6% → 4.1%), asset turnover declining (2.22x → 1.49x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.6% | 2.22 | 1.29 | 7.5% |
| FY2023 | ₹0Cr | ₹0Cr | 3.2% | 2.29 | 1.25 | 9.1% |
| FY2024 | ₹0Cr | ₹0Cr | 4.2% | 1.80 | 1.20 | 9.1% |
| FY2025 | ₹0Cr | ₹0Cr | 4.3% | 1.50 | 1.23 | 8.0% |
| FY2026 | ₹0Cr | ₹0Cr | 4.1% | 1.49 | 1.21 | 7.5% |
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.