DuPont Decomposition
Why does JAYNECOIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.3% = 6.5% × 1.19 × 2.10
Latest: FY2026
Profitability
Net Margin
6.5%
37.7% →6.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.19x
0.94x →1.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.10x
3.45x →2.10x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 106.3 pp over 5 years. Driven by net margin declining (37.7% → 6.5%), asset turnover improving (0.94x → 1.19x), leverage falling (3.45x → 2.10x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 37.7% | 0.94 | 3.45 | 122.6% |
| FY2023 | ₹0Cr | ₹0Cr | 3.6% | 1.05 | 2.94 | 11.0% |
| FY2024 | ₹0Cr | ₹0Cr | 3.5% | 0.97 | 2.70 | 9.3% |
| FY2025 | ₹0Cr | ₹0Cr | 1.9% | 1.04 | 2.42 | 4.7% |
| FY2026 | ₹0Cr | ₹0Cr | 6.5% | 1.19 | 2.10 | 16.3% |
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.