DuPont Decomposition
Why does JYOTICNC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.8% = 16.1% × 0.58 × 1.81
Latest: FY2026
Profitability
Net Margin
16.1%
-6.5% →16.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.58x
0.58x →0.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.81x
31.25x →1.81x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 134.2 pp over 5 years. Driven by net margin improving (-6.5% → 16.1%), leverage falling (31.25x → 1.81x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -6.5% | 0.58 | 31.25 | -117.4% |
| FY2023 | ₹0Cr | ₹-0Cr | -0.6% | 0.61 | 18.47 | -6.7% |
| FY2024 | ₹0Cr | ₹0Cr | 11.3% | 0.61 | 1.60 | 11.1% |
| FY2025 | ₹0Cr | ₹0Cr | 17.4% | 0.65 | 1.66 | 18.7% |
| FY2026 | ₹0Cr | ₹0Cr | 16.1% | 0.58 | 1.81 | 16.8% |
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.