DuPont Decomposition
Why does JAGSNPHARM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
23.1% = 20.6% × 0.97 × 1.16
Latest: FY2025
Profitability
Net Margin
20.6%
10.1% →20.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.97x
0.28x →0.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.16x
1.23x →1.16x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 19.5 pp over 3 years. Driven by net margin improving (10.1% → 20.6%), asset turnover improving (0.28x → 0.97x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.1% | 0.28 | 1.23 | 3.5% |
| FY2024 | ₹0Cr | ₹0Cr | 8.2% | 0.20 | 1.16 | 1.9% |
| FY2025 | ₹0Cr | ₹0Cr | 20.6% | 0.97 | 1.16 | 23.1% |
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.