DuPont Decomposition
Why does JAMNAAUTO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.2% = 8.1% × 1.46 × 1.54
Latest: FY2025
Profitability
Net Margin
8.1%
8.4% →8.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.46x
0.59x →1.46x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.54x
1.34x →1.54x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.6 pp over 3 years. Driven by asset turnover improving (0.59x → 1.46x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.4% | 0.59 | 1.34 | 6.6% |
| FY2024 | ₹0Cr | ₹0Cr | 10.4% | 0.45 | 1.46 | 6.9% |
| FY2025 | ₹0Cr | ₹0Cr | 8.1% | 1.46 | 1.54 | 18.2% |
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.