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
10.9% = 8.6% × 0.86 × 1.49
Latest: FY2026
Profitability
Net Margin
8.6%
7.9% →8.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.86x
1.71x →0.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.49x
1.70x →1.49x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.9 pp over 5 years. Driven by asset turnover declining (1.71x → 0.86x), leverage falling (1.70x → 1.49x).
Historical Decomposition
Last 5 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 | 14.9% | 2.18 | 1.49 | 48.5% |
| FY2026 | ₹0Cr | ₹0Cr | 8.6% | 0.86 | 1.49 | 10.9% |
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.