DuPont Decomposition
Why does JETFREIGHT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.6% = 1.5% × 2.31 × 2.70
Latest: FY2026
Profitability
Net Margin
1.5%
0.6% →1.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.31x
4.07x →2.31x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.70x
4.29x →2.70x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.7 pp over 5 years. Driven by asset turnover declining (4.07x → 2.31x), leverage falling (4.29x → 2.70x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.6% | 4.07 | 4.29 | 11.2% |
| FY2023 | ₹0Cr | ₹-0Cr | -0.1% | 2.71 | 2.45 | -0.6% |
| FY2024 | ₹0Cr | ₹0Cr | 0.0% | 2.35 | 2.80 | 0.3% |
| FY2025 | ₹0Cr | ₹0Cr | 0.8% | 2.50 | 2.75 | 5.8% |
| FY2026 | ₹0Cr | ₹0Cr | 1.5% | 2.31 | 2.70 | 9.6% |
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.