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
7.3% = 6.2% × 0.69 × 1.69
Latest: FY2025
Profitability
Net Margin
6.2%
16.5% →6.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.69x
0.19x →0.69x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.69x
2.21x →1.69x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~7%. Driven by net margin declining (16.5% → 6.2%), asset turnover improving (0.19x → 0.69x), leverage falling (2.21x → 1.69x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 16.5% | 0.19 | 2.21 | 7.0% |
| FY2024 | ₹0Cr | ₹0Cr | 16.2% | 0.18 | 1.84 | 5.5% |
| FY2025 | ₹0Cr | ₹0Cr | 6.2% | 0.69 | 1.69 | 7.3% |
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.