DuPont Decomposition
Why does JTEKTINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.5% = 2.9% × 1.35 × 1.66
Latest: FY2026
Profitability
Net Margin
2.9%
2.3% →2.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.35x
1.57x →1.35x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.66x
1.58x →1.66x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~6%. Driven by asset turnover declining (1.57x → 1.35x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.3% | 1.57 | 1.58 | 5.8% |
| FY2023 | ₹0Cr | ₹0Cr | 4.3% | 1.89 | 1.46 | 11.9% |
| FY2024 | ₹0Cr | ₹0Cr | 4.8% | 1.75 | 1.55 | 13.0% |
| FY2025 | ₹0Cr | ₹0Cr | 3.1% | 1.64 | 1.66 | 8.6% |
| FY2026 | ₹0Cr | ₹0Cr | 2.9% | 1.35 | 1.66 | 6.5% |
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.