DuPont Decomposition
Why does JLHL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.6% = 13.0% × 0.63 × 1.54
Latest: FY2026
Profitability
Net Margin
13.0%
7.0% →13.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.63x
0.81x →0.63x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.54x
3.10x →1.54x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.8 pp over 5 years. Driven by net margin improving (7.0% → 13.0%), asset turnover declining (0.81x → 0.63x), leverage falling (3.10x → 1.54x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.0% | 0.81 | 3.10 | 17.4% |
| FY2023 | ₹0Cr | ₹0Cr | 8.2% | 0.91 | 2.70 | 19.9% |
| FY2024 | ₹0Cr | ₹0Cr | 16.5% | 0.83 | 1.10 | 15.1% |
| FY2025 | ₹0Cr | ₹0Cr | 14.7% | 0.68 | 1.40 | 14.2% |
| FY2026 | ₹0Cr | ₹0Cr | 13.0% | 0.63 | 1.54 | 12.6% |
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.