DuPont Decomposition
Why does JYOTHYLAB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.1% = 13.0% × 1.06 × 1.31
Latest: FY2025
Profitability
Net Margin
13.0%
9.7% →13.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.06x
1.20x →1.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.31x
1.33x →1.31x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.6 pp over 3 years. Driven by net margin improving (9.7% → 13.0%), asset turnover declining (1.20x → 1.06x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.7% | 1.20 | 1.33 | 15.5% |
| FY2024 | ₹0Cr | ₹0Cr | 13.4% | 1.15 | 1.33 | 20.4% |
| FY2025 | ₹0Cr | ₹0Cr | 13.0% | 1.06 | 1.31 | 18.1% |
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.