DuPont Decomposition
Why does JWL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.7% = 5.9% × 0.62 × 1.58
Latest: FY2026
Profitability
Net Margin
5.9%
4.3% →5.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.62x
1.09x →0.62x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.58x
1.57x →1.58x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.5 pp over 5 years. Driven by net margin improving (4.3% → 5.9%), asset turnover declining (1.09x → 0.62x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.3% | 1.09 | 1.57 | 7.3% |
| FY2023 | ₹0Cr | ₹0Cr | 5.9% | 1.25 | 2.03 | 15.0% |
| FY2024 | ₹0Cr | ₹0Cr | 9.2% | 1.23 | 1.82 | 20.5% |
| FY2025 | ₹0Cr | ₹0Cr | 9.7% | 0.99 | 1.45 | 13.9% |
| FY2026 | ₹0Cr | ₹0Cr | 5.9% | 0.62 | 1.58 | 5.7% |
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.