DuPont Decomposition
Why does PCJEWELLER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.3% = 25.7% × 0.27 × 1.36
Latest: FY2025
Profitability
Net Margin
25.7%
-174.4% →25.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.27x
0.02x →0.27x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.36x
2.07x →1.36x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 17.5 pp over 3 years. Driven by net margin improving (-174.4% → 25.7%), asset turnover improving (0.02x → 0.27x), leverage falling (2.07x → 1.36x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -174.4% | 0.02 | 2.07 | -8.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -250.9% | 0.01 | 2.48 | -4.2% |
| FY2025 | ₹0Cr | ₹0Cr | 25.7% | 0.27 | 1.36 | 9.3% |
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.