DuPont Decomposition
Why does BLUEJET earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.2% = 26.2% × 0.58 × 1.21
Latest: FY2026
Profitability
Net Margin
26.2%
26.8% →26.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.58x
0.95x →0.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.37x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 16.6 pp over 5 years. Driven by asset turnover declining (0.95x → 0.58x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 26.8% | 0.95 | 1.37 | 34.8% |
| FY2023 | ₹0Cr | ₹0Cr | 22.2% | 0.84 | 1.26 | 23.5% |
| FY2024 | ₹0Cr | ₹0Cr | 23.1% | 0.67 | 1.25 | 19.4% |
| FY2025 | ₹0Cr | ₹0Cr | 29.6% | 0.73 | 1.25 | 26.9% |
| FY2026 | ₹0Cr | ₹0Cr | 26.2% | 0.58 | 1.21 | 18.2% |
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.