DuPont Decomposition
Why does JAYAGROGN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.5% = 2.2% × 2.87 × 1.51
Latest: FY2025
Profitability
Net Margin
2.2%
3.5% →2.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.87x
3.24x →2.87x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.51x
1.68x →1.51x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.5 pp over 4 years. Driven by net margin declining (3.5% → 2.2%), asset turnover declining (3.24x → 2.87x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.5% | 3.24 | 1.68 | 19.0% |
| FY2023 | ₹0Cr | ₹0Cr | 1.8% | 3.57 | 1.52 | 9.7% |
| FY2024 | ₹0Cr | ₹0Cr | 2.4% | 2.42 | 1.61 | 9.5% |
| FY2025 | ₹0Cr | ₹0Cr | 2.2% | 2.87 | 1.51 | 9.5% |
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.