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
18.7% = 17.4% × 0.65 × 1.66
Latest: FY2025
Profitability
Net Margin
17.4%
-6.5% →17.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.65x
0.58x →0.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.66x
31.25x →1.66x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 136.1 pp over 4 years. Driven by net margin improving (-6.5% → 17.4%), leverage falling (31.25x → 1.66x).
Historical Decomposition
Last 4 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 | 22.1% | 0.21 | 1.60 | 7.3% |
| FY2025 | ₹0Cr | ₹0Cr | 17.4% | 0.65 | 1.66 | 18.7% |
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.