DuPont Decomposition
Why does RBZJEWEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.3% = 8.6% × 1.31 × 1.62
Latest: FY2026
Profitability
Net Margin
8.6%
5.7% →8.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.31x
1.64x →1.31x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.62x
2.20x →1.62x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.3 pp over 5 years. Driven by net margin improving (5.7% → 8.6%), asset turnover declining (1.64x → 1.31x), leverage falling (2.20x → 1.62x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.7% | 1.64 | 2.20 | 20.6% |
| FY2023 | ₹0Cr | ₹0Cr | 7.8% | 1.39 | 2.24 | 24.1% |
| FY2024 | ₹0Cr | ₹0Cr | 6.6% | 1.15 | 1.37 | 10.4% |
| FY2025 | ₹0Cr | ₹0Cr | 7.3% | 1.51 | 1.44 | 15.8% |
| FY2026 | ₹0Cr | ₹0Cr | 8.6% | 1.31 | 1.62 | 18.3% |
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.