DuPont Decomposition
Why does JKTYRE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.9% = 3.4% × 1.00 × 2.91
Latest: FY2025
Profitability
Net Margin
3.4%
3.1% →3.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.00x
0.29x →1.00x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.91x
3.67x →2.91x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.7 pp over 3 years. Driven by asset turnover improving (0.29x → 1.00x), leverage falling (3.67x → 2.91x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.1% | 0.29 | 3.67 | 3.3% |
| FY2024 | ₹0Cr | ₹0Cr | 4.6% | 0.26 | 3.14 | 3.8% |
| FY2025 | ₹0Cr | ₹0Cr | 3.4% | 1.00 | 2.91 | 9.9% |
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.