DuPont Decomposition
Why does JIOFIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.2% = 56.4% × 0.02 × 1.22
Latest: FY2026
Profitability
Net Margin
56.4%
108.8% →56.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.02x
0.07x →0.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.22x
1.00x →1.22x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.4 pp over 5 years. Driven by net margin declining (108.8% → 56.4%), leverage rising (1.00x → 1.22x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 108.8% | 0.07 | 1.00 | 7.5% |
| FY2023 | ₹0Cr | ₹0Cr | 147.5% | 0.00 | 1.01 | 0.0% |
| FY2024 | ₹0Cr | ₹0Cr | 137.1% | 0.01 | 1.04 | 1.1% |
| FY2025 | ₹0Cr | ₹0Cr | 129.2% | 0.01 | 1.08 | 1.3% |
| FY2026 | ₹0Cr | ₹0Cr | 56.4% | 0.02 | 1.22 | 1.2% |
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.