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
4.7% = 1.9% × 1.04 × 2.42
Latest: FY2025
Profitability
Net Margin
1.9%
0.3% →1.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.04x
0.24x →1.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.42x
2.94x →2.42x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.5 pp over 3 years. Driven by net margin improving (0.3% → 1.9%), asset turnover improving (0.24x → 1.04x), leverage falling (2.94x → 2.42x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.3% | 0.24 | 2.94 | 0.3% |
| FY2024 | ₹0Cr | ₹0Cr | 0.1% | 0.23 | 2.70 | 0.1% |
| FY2025 | ₹0Cr | ₹0Cr | 1.9% | 1.04 | 2.42 | 4.7% |
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.