DuPont Decomposition
Why does JUNIPER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.6% = 7.5% × 0.21 × 1.61
Latest: FY2025
Profitability
Net Margin
7.5%
-62.5% →7.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.21x
0.10x →0.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.61x
8.61x →1.61x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 55.4 pp over 4 years. Driven by net margin improving (-62.5% → 7.5%), asset turnover improving (0.10x → 0.21x), leverage falling (8.61x → 1.61x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -62.5% | 0.10 | 8.61 | -52.8% |
| FY2023 | ₹0Cr | ₹-0Cr | -0.2% | 0.22 | 8.52 | -0.4% |
| FY2024 | ₹0Cr | ₹0Cr | 5.7% | 0.19 | 1.61 | 1.8% |
| FY2025 | ₹0Cr | ₹0Cr | 7.5% | 0.21 | 1.61 | 2.6% |
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.