DuPont Decomposition
Why does JAGRAN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.3% = 7.1% × 0.68 × 1.32
Latest: FY2025
Profitability
Net Margin
7.1%
11.0% →7.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.68x
0.62x →0.68x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.32x
1.69x →1.32x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.1 pp over 3 years. Driven by net margin declining (11.0% → 7.1%), leverage falling (1.69x → 1.32x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.0% | 0.62 | 1.69 | 11.4% |
| FY2024 | ₹0Cr | ₹0Cr | 9.7% | 0.67 | 1.48 | 9.5% |
| FY2025 | ₹0Cr | ₹0Cr | 7.1% | 0.68 | 1.32 | 6.3% |
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.