DuPont Decomposition
Why does SJS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.1% = 15.9% × 0.85 × 1.27
Latest: FY2025
Profitability
Net Margin
15.9%
14.4% →15.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.85x
0.20x →0.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.27x
1.25x →1.27x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.5 pp over 3 years. Driven by net margin improving (14.4% → 15.9%), asset turnover improving (0.20x → 0.85x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 14.4% | 0.20 | 1.25 | 3.6% |
| FY2024 | ₹0Cr | ₹0Cr | 14.6% | 0.24 | 1.43 | 4.9% |
| FY2025 | ₹0Cr | ₹0Cr | 15.9% | 0.85 | 1.27 | 17.1% |
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.