DuPont Decomposition
Why does AXISBANK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.9% = 33.0% × 0.05 × 8.82
Latest: FY2025
Profitability
Net Margin
33.0%
33.0% →33.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.05x
0.05x →0.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
8.82x
8.82x →8.82x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹0Cr | 33.0% | 0.05 | 8.82 | 14.9% |
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.