DuPont Decomposition
Why does JKPAPER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.8% = 3.8% × 0.67 × 1.91
Latest: FY2026
Profitability
Net Margin
3.8%
14.0% →3.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.67x
0.51x →0.67x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.91x
2.54x →1.91x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.3 pp over 5 years. Driven by net margin declining (14.0% → 3.8%), asset turnover improving (0.51x → 0.67x), leverage falling (2.54x → 1.91x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.0% | 0.51 | 2.54 | 18.1% |
| FY2023 | ₹0Cr | ₹0Cr | 18.7% | 0.72 | 2.21 | 29.6% |
| FY2024 | ₹0Cr | ₹0Cr | 17.0% | 0.71 | 1.84 | 22.1% |
| FY2025 | ₹0Cr | ₹0Cr | 6.1% | 0.70 | 1.77 | 7.6% |
| FY2026 | ₹0Cr | ₹0Cr | 3.8% | 0.67 | 1.91 | 4.8% |
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.