DuPont Decomposition
Why does JASH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.7% = 10.3% × 0.84 × 1.70
Latest: FY2026
Profitability
Net Margin
10.3%
9.0% →10.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
0.97x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.70x
1.98x →1.70x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.6 pp over 5 years. Driven by net margin improving (9.0% → 10.3%), asset turnover declining (0.97x → 0.84x), leverage falling (1.98x → 1.70x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.0% | 0.97 | 1.98 | 17.2% |
| FY2023 | ₹0Cr | ₹0Cr | 13.1% | 0.88 | 1.88 | 21.7% |
| FY2024 | ₹0Cr | ₹0Cr | 13.1% | 0.84 | 1.72 | 19.0% |
| FY2025 | ₹0Cr | ₹0Cr | 11.9% | 0.98 | 1.73 | 20.3% |
| FY2026 | ₹0Cr | ₹0Cr | 10.3% | 0.84 | 1.70 | 14.7% |
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.