DuPont Decomposition
Why does JOCIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.5% = 0.1% × 3.01 × 1.40
Latest: FY2025
Profitability
Net Margin
0.1%
0.9% →0.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.01x
2.93x →3.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.40x
1.26x →1.40x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.0 pp over 4 years.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.9% | 2.93 | 1.26 | 3.5% |
| FY2023 | ₹0Cr | ₹0Cr | 1.1% | 3.62 | 1.23 | 4.8% |
| FY2024 | ₹0Cr | ₹0Cr | 0.2% | 2.70 | 1.32 | 0.8% |
| FY2025 | ₹0Cr | ₹0Cr | 0.1% | 3.01 | 1.40 | 0.5% |
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.