DuPont Decomposition
Why does BANKA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-28.3% = -16.5% × 0.66 × 2.61
Latest: FY2025
Profitability
Net Margin
-16.5%
8.0% →-16.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.66x
0.60x →0.66x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.61x
1.71x →2.61x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 36.6 pp over 4 years. Driven by net margin declining (8.0% → -16.5%), leverage rising (1.71x → 2.61x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.0% | 0.60 | 1.71 | 8.3% |
| FY2023 | ₹0Cr | ₹0Cr | 6.0% | 0.65 | 1.63 | 6.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -1.3% | 0.65 | 1.95 | -1.6% |
| FY2025 | ₹0Cr | ₹-0Cr | -16.5% | 0.66 | 2.61 | -28.3% |
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.