DuPont Decomposition
Why does JUBLINGREA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.9% = 6.4% × 0.79 × 1.75
Latest: FY2026
Profitability
Net Margin
6.4%
9.7% →6.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.79x
1.29x →0.79x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.75x
1.56x →1.75x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.7 pp over 5 years. Driven by net margin declining (9.7% → 6.4%), asset turnover declining (1.29x → 0.79x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.7% | 1.29 | 1.56 | 19.6% |
| FY2023 | ₹0Cr | ₹0Cr | 6.5% | 1.11 | 1.60 | 11.5% |
| FY2024 | ₹0Cr | ₹0Cr | 4.5% | 0.87 | 1.73 | 6.7% |
| FY2025 | ₹0Cr | ₹0Cr | 6.1% | 0.82 | 1.72 | 8.6% |
| FY2026 | ₹0Cr | ₹0Cr | 6.4% | 0.79 | 1.75 | 8.9% |
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.