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
1.3% = 119.7% × 0.01 × 1.08
Latest: FY2025
Profitability
Net Margin
119.7%
108.8% →119.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.01x
0.07x →0.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.08x
1.00x →1.08x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.2 pp over 4 years. Driven by net margin improving (108.8% → 119.7%).
Historical Decomposition
Last 4 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 | 74.3% | 0.00 | 1.04 | 0.2% |
| FY2025 | ₹0Cr | ₹0Cr | 119.7% | 0.01 | 1.08 | 1.3% |
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.