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
8.6% = 3.2% × 1.63 × 1.66
Latest: FY2025
Profitability
Net Margin
3.2%
4.9% →3.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.63x
0.49x →1.63x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.66x
1.53x →1.66x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.8 pp over 3 years. Driven by net margin declining (4.9% → 3.2%), asset turnover improving (0.49x → 1.63x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.9% | 0.49 | 1.53 | 3.7% |
| FY2024 | ₹0Cr | ₹0Cr | 5.4% | 0.50 | 1.55 | 4.2% |
| FY2025 | ₹0Cr | ₹0Cr | 3.2% | 1.63 | 1.66 | 8.6% |
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.