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
13.8% = 9.7% × 0.98 × 1.44
Latest: FY2025
Profitability
Net Margin
9.7%
5.9% →9.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.98x
1.25x →0.98x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
2.03x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.2 pp over 3 years. Driven by net margin improving (5.9% → 9.7%), asset turnover declining (1.25x → 0.98x), leverage falling (2.03x → 1.44x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| 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% | 0.98 | 1.44 | 13.8% |
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.