DuPont Decomposition
Why does JAICORPLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.7% = 12.8% × 0.35 × 1.04
Latest: FY2025
Profitability
Net Margin
12.8%
7.3% →12.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.35x
0.47x →0.35x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.04x
1.05x →1.04x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.1 pp over 4 years. Driven by net margin improving (7.3% → 12.8%), asset turnover declining (0.47x → 0.35x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.3% | 0.47 | 1.05 | 3.6% |
| FY2023 | ₹0Cr | ₹-0Cr | -2.3% | 0.40 | 1.05 | -0.9% |
| FY2024 | ₹0Cr | ₹0Cr | 11.3% | 0.30 | 1.05 | 3.5% |
| FY2025 | ₹0Cr | ₹0Cr | 12.8% | 0.35 | 1.04 | 4.7% |
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.