DuPont Decomposition
Why does JAIBALAJI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
26.3% = 8.8% × 1.63 × 1.83
Latest: FY2025
Profitability
Net Margin
8.8%
-0.8% →8.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.63x
0.58x →1.63x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.83x
5.32x →1.83x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 28.6 pp over 3 years. Driven by net margin improving (-0.8% → 8.8%), asset turnover improving (0.58x → 1.63x), leverage falling (5.32x → 1.83x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -0.8% | 0.58 | 5.32 | -2.4% |
| FY2024 | ₹0Cr | ₹0Cr | 14.8% | 0.55 | 2.23 | 18.1% |
| FY2025 | ₹0Cr | ₹0Cr | 8.8% | 1.63 | 1.83 | 26.3% |
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.