DuPont Decomposition
Why does JAYKAY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
33.7% = 97.0% × 0.29 × 1.21
Latest: FY2026
Profitability
Net Margin
97.0%
158.9% →97.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.29x
0.08x →0.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.12x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 19.2 pp over 5 years. Driven by net margin declining (158.9% → 97.0%), asset turnover improving (0.08x → 0.29x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 158.9% | 0.08 | 1.12 | 14.5% |
| FY2023 | ₹0Cr | ₹0Cr | 15.1% | 0.23 | 1.41 | 4.8% |
| FY2024 | ₹0Cr | ₹0Cr | 16.3% | 0.18 | 1.66 | 4.8% |
| FY2025 | ₹0Cr | ₹0Cr | 8.7% | 0.13 | 1.32 | 1.5% |
| FY2026 | ₹0Cr | ₹0Cr | 97.0% | 0.29 | 1.21 | 33.7% |
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.