DuPont Decomposition
Why does JAYSREETEA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-6.3% = -2.7% × 0.97 × 2.41
Latest: FY2026
Profitability
Net Margin
-2.7%
3.6% →-2.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.97x
0.69x →0.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.41x
3.45x →2.41x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.9 pp over 5 years. Driven by net margin declining (3.6% → -2.7%), asset turnover improving (0.69x → 0.97x), leverage falling (3.45x → 2.41x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.6% | 0.69 | 3.45 | 8.6% |
| FY2023 | ₹0Cr | ₹-0Cr | -5.8% | 0.89 | 4.14 | -21.3% |
| FY2024 | ₹0Cr | ₹0Cr | 1.8% | 0.68 | 3.59 | 4.5% |
| FY2025 | ₹0Cr | ₹0Cr | 14.7% | 0.87 | 2.36 | 30.2% |
| FY2026 | ₹0Cr | ₹-0Cr | -2.7% | 0.97 | 2.41 | -6.3% |
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.