DuPont Decomposition
Why does JBCHEPHARM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.2% = 17.1% × 0.90 × 1.24
Latest: FY2025
Profitability
Net Margin
17.1%
13.0% →17.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.90x
0.89x →0.90x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.24x
1.43x →1.24x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.7 pp over 3 years. Driven by net margin improving (13.0% → 17.1%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 13.0% | 0.89 | 1.43 | 16.5% |
| FY2024 | ₹0Cr | ₹0Cr | 15.9% | 0.87 | 1.37 | 18.9% |
| FY2025 | ₹0Cr | ₹0Cr | 17.1% | 0.90 | 1.24 | 19.2% |
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.