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
12.8% = 4.8% × 1.02 × 2.64
Latest: FY2026
Profitability
Net Margin
4.8%
1.8% →4.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.02x
0.97x →1.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.64x
4.30x →2.64x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.4 pp over 5 years. Driven by net margin improving (1.8% → 4.8%), leverage falling (4.30x → 2.64x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.8% | 0.97 | 4.30 | 7.4% |
| FY2023 | ₹0Cr | ₹0Cr | 1.8% | 1.17 | 3.67 | 7.7% |
| FY2024 | ₹0Cr | ₹0Cr | 5.3% | 1.05 | 3.14 | 17.5% |
| FY2025 | ₹0Cr | ₹0Cr | 3.5% | 1.01 | 2.99 | 10.5% |
| FY2026 | ₹0Cr | ₹0Cr | 4.8% | 1.02 | 2.64 | 12.8% |
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.