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
28.6% = 12.4% × 1.26 × 1.82
Latest: FY2026
Profitability
Net Margin
12.4%
7.9% →12.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.26x
1.26x →1.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.82x
1.56x →1.82x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.1 pp over 5 years. Driven by net margin improving (7.9% → 12.4%), leverage rising (1.56x → 1.82x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.9% | 1.26 | 1.56 | 15.5% |
| FY2023 | ₹0Cr | ₹0Cr | 10.2% | 1.22 | 1.88 | 23.5% |
| FY2024 | ₹0Cr | ₹0Cr | 9.9% | 1.35 | 1.93 | 25.8% |
| FY2025 | ₹0Cr | ₹0Cr | 12.3% | 1.12 | 2.18 | 30.1% |
| FY2026 | ₹0Cr | ₹0Cr | 12.4% | 1.26 | 1.82 | 28.6% |
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.