DuPont Decomposition
Why does JSFB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.3% = 9.0% × 0.08 × 10.61
Latest: FY2026
Profitability
Net Margin
9.0%
1.1% →9.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.08x
0.08x →0.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
10.61x
16.81x →10.61x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.8 pp over 5 years. Driven by net margin improving (1.1% → 9.0%), leverage falling (16.81x → 10.61x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.1% | 0.08 | 16.81 | 1.5% |
| FY2023 | ₹0Cr | ₹0Cr | 11.6% | 0.09 | 14.27 | 14.2% |
| FY2024 | ₹0Cr | ₹0Cr | 25.5% | 0.08 | 9.14 | 18.7% |
| FY2025 | ₹0Cr | ₹0Cr | 16.0% | 0.08 | 9.34 | 12.2% |
| FY2026 | ₹0Cr | ₹0Cr | 9.0% | 0.08 | 10.61 | 7.3% |
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.