DuPont Decomposition
Why does JSLL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
33.2% = 19.3% × 1.43 × 1.20
Latest: FY2025
Profitability
Net Margin
19.3%
7.6% →19.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.43x
2.38x →1.43x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.20x
1.69x →1.20x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.6 pp over 4 years. Driven by net margin improving (7.6% → 19.3%), asset turnover declining (2.38x → 1.43x), leverage falling (1.69x → 1.20x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.6% | 2.38 | 1.69 | 30.7% |
| FY2023 | ₹0Cr | ₹0Cr | 16.6% | 1.35 | 1.20 | 26.8% |
| FY2024 | ₹0Cr | ₹0Cr | 21.3% | 1.47 | 1.15 | 36.0% |
| FY2025 | ₹0Cr | ₹0Cr | 19.3% | 1.43 | 1.20 | 33.2% |
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.