DuPont Decomposition
Why does JISLDVREQS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-0.4% = -0.4% × 0.53 × 2.08
Latest: FY2026
Profitability
Net Margin
-0.4%
7.0% →-0.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.53x
0.37x →0.53x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.08x
3.44x →2.08x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.3 pp over 5 years. Driven by net margin declining (7.0% → -0.4%), asset turnover improving (0.37x → 0.53x), leverage falling (3.44x → 2.08x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.0% | 0.37 | 3.44 | 8.9% |
| FY2023 | ₹0Cr | ₹0Cr | 14.6% | 0.51 | 2.12 | 16.0% |
| FY2024 | ₹0Cr | ₹0Cr | 0.8% | 0.54 | 2.06 | 0.8% |
| FY2025 | ₹0Cr | ₹0Cr | 0.6% | 0.50 | 2.04 | 0.6% |
| FY2026 | ₹0Cr | ₹-0Cr | -0.4% | 0.53 | 2.08 | -0.4% |
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.