DuPont Decomposition

Why does JPOLYINVST earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

19.4% = 44162.2% × 0.00 × 1.03

Latest: FY2025

Profitability

Net Margin

44162.2%

25.0% →44162.2%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.00x

0.37x →0.00x

Revenue per ₹ of assets

Leverage

Equity Multiplier

1.03x

1.03x →1.03x

Assets funded by equity vs debt

Trend Analysis

ROE improved by 9.8 pp over 3 years. Driven by net margin improving (25.0% → 44162.2%), asset turnover declining (0.37x → 0.00x).

Historical Decomposition

Last 3 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY20230Cr0Cr25.0%0.371.039.6%
FY20240Cr0Cr714.8%0.011.033.7%
FY20250Cr0Cr44162.2%0.001.0319.4%

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)

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.