DuPont Decomposition
Why does JUBLPHARMA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.4% = 11.7% × 0.56 × 2.04
Latest: FY2025
Profitability
Net Margin
11.7%
-6.0% →11.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.56x
0.15x →0.56x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.04x
2.07x →2.04x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 15.3 pp over 3 years. Driven by net margin improving (-6.0% → 11.7%), asset turnover improving (0.15x → 0.56x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -6.0% | 0.15 | 2.07 | -1.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -3.5% | 0.15 | 2.13 | -1.1% |
| FY2025 | ₹0Cr | ₹0Cr | 11.7% | 0.56 | 2.04 | 13.4% |
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.