DuPont Decomposition
Why does JUBLFOOD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.7% = 4.5% × 0.99 × 4.17
Latest: FY2026
Profitability
Net Margin
4.5%
9.6% →4.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.99x
0.92x →0.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.17x
2.46x →4.17x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.9 pp over 5 years. Driven by net margin declining (9.6% → 4.5%), leverage rising (2.46x → 4.17x). 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 | 9.6% | 0.92 | 2.46 | 21.6% |
| FY2023 | ₹0Cr | ₹0Cr | 6.9% | 0.95 | 2.64 | 17.3% |
| FY2024 | ₹0Cr | ₹0Cr | 7.2% | 0.69 | 3.74 | 18.4% |
| FY2025 | ₹0Cr | ₹0Cr | 2.6% | 0.95 | 4.06 | 10.0% |
| FY2026 | ₹0Cr | ₹0Cr | 4.5% | 0.99 | 4.17 | 18.7% |
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.