DuPont Decomposition
Why does JAIPURKURT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.1% = 5.3% × 0.75 × 1.77
Latest: FY2025
Profitability
Net Margin
5.3%
0.8% →5.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
1.46x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.77x
2.71x →1.77x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.9 pp over 4 years. Driven by net margin improving (0.8% → 5.3%), asset turnover declining (1.46x → 0.75x), leverage falling (2.71x → 1.77x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.8% | 1.46 | 2.71 | 3.1% |
| FY2023 | ₹0Cr | ₹0Cr | 0.2% | 1.02 | 1.66 | 0.4% |
| FY2024 | ₹0Cr | ₹0Cr | 1.2% | 0.65 | 2.33 | 1.9% |
| FY2025 | ₹0Cr | ₹0Cr | 5.3% | 0.75 | 1.77 | 7.1% |
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.