DuPont Decomposition
Why does GESHIP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.4% = 54.4% × 0.28 × 1.15
Latest: FY2026
Profitability
Net Margin
54.4%
18.1% →54.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.28x
0.25x →0.28x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.15x
1.73x →1.15x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.5 pp over 5 years. Driven by net margin improving (18.1% → 54.4%), leverage falling (1.73x → 1.15x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 18.1% | 0.25 | 1.73 | 7.8% |
| FY2023 | ₹0Cr | ₹0Cr | 45.5% | 0.37 | 1.48 | 25.1% |
| FY2024 | ₹0Cr | ₹0Cr | 50.5% | 0.31 | 1.36 | 21.1% |
| FY2025 | ₹0Cr | ₹0Cr | 44.0% | 0.30 | 1.24 | 16.4% |
| FY2026 | ₹0Cr | ₹0Cr | 54.4% | 0.28 | 1.15 | 17.4% |
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.