DuPont Decomposition
Why does BANCOINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
30.1% = 12.3% × 1.12 × 2.18
Latest: FY2025
Profitability
Net Margin
12.3%
8.4% →12.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.12x
0.32x →1.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.18x
1.88x →2.18x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 25.0 pp over 3 years. Driven by net margin improving (8.4% → 12.3%), asset turnover improving (0.32x → 1.12x), leverage rising (1.88x → 2.18x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.4% | 0.32 | 1.88 | 5.1% |
| FY2024 | ₹0Cr | ₹0Cr | 9.4% | 0.36 | 1.93 | 6.5% |
| FY2025 | ₹0Cr | ₹0Cr | 12.3% | 1.12 | 2.18 | 30.1% |
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.