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
17.1% = 17.4% × 0.82 × 1.19
Latest: FY2026
Profitability
Net Margin
17.4%
15.9% →17.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.82x
0.93x →0.82x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.22x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~17%. Driven by net margin improving (15.9% → 17.4%), asset turnover declining (0.93x → 0.82x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.9% | 0.93 | 1.22 | 18.1% |
| FY2023 | ₹0Cr | ₹0Cr | 13.2% | 0.88 | 1.43 | 16.5% |
| FY2024 | ₹0Cr | ₹0Cr | 16.0% | 0.86 | 1.37 | 18.9% |
| FY2025 | ₹0Cr | ₹0Cr | 17.1% | 0.90 | 1.24 | 19.2% |
| FY2026 | ₹0Cr | ₹0Cr | 17.4% | 0.82 | 1.19 | 17.1% |
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.