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
20.1% = 12.1% × 0.97 × 1.71
Latest: FY2025
Profitability
Net Margin
12.1%
19.7% →12.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.97x
0.38x →0.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.71x
1.88x →1.71x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.2 pp over 3 years. Driven by net margin declining (19.7% → 12.1%), asset turnover improving (0.38x → 0.97x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 19.7% | 0.38 | 1.88 | 13.9% |
| FY2024 | ₹0Cr | ₹0Cr | 17.9% | 0.36 | 1.72 | 11.1% |
| FY2025 | ₹0Cr | ₹0Cr | 12.1% | 0.97 | 1.71 | 20.1% |
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.