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
9.0% = 2.2% × 2.87 × 1.43
Latest: FY2025
Profitability
Net Margin
2.2%
2.4% →2.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.87x
0.80x →2.87x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.43x
1.50x →1.43x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.2 pp over 3 years. Driven by asset turnover improving (0.80x → 2.87x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.4% | 0.80 | 1.50 | 2.8% |
| FY2024 | ₹0Cr | ₹0Cr | 2.9% | 0.72 | 1.61 | 3.3% |
| FY2025 | ₹0Cr | ₹0Cr | 2.2% | 2.87 | 1.43 | 9.0% |
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.