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
11.1% = 820.0% × 0.01 × 1.03
Latest: FY2024
Profitability
Net Margin
820.0%
77.5% →820.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.01x
0.25x →0.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.03x
3.00x →1.03x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 47.6 pp over 3 years. Driven by net margin improving (77.5% → 820.0%), asset turnover declining (0.25x → 0.01x), leverage falling (3.00x → 1.03x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 77.5% | 0.25 | 3.00 | 58.8% |
| FY2023 | ₹0Cr | ₹0Cr | 16.0% | 1.28 | 1.03 | 21.1% |
| FY2024 | ₹0Cr | ₹0Cr | 820.0% | 0.01 | 1.03 | 11.1% |
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.