DuPont Decomposition
Why does JAYBARMARU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.1% = 5.5% × 1.39 × 2.63
Latest: FY2026
Profitability
Net Margin
5.5%
1.5% →5.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.39x
1.45x →1.39x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.63x
2.80x →2.63x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.1 pp over 5 years. Driven by net margin improving (1.5% → 5.5%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.5% | 1.45 | 2.80 | 5.9% |
| FY2023 | ₹0Cr | ₹0Cr | 1.8% | 1.65 | 2.56 | 7.5% |
| FY2024 | ₹0Cr | ₹0Cr | 1.5% | 1.36 | 2.89 | 6.0% |
| FY2025 | ₹0Cr | ₹0Cr | 1.4% | 1.37 | 2.97 | 5.8% |
| FY2026 | ₹0Cr | ₹0Cr | 5.5% | 1.39 | 2.63 | 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.