DuPont Decomposition
Why does BANKBARODA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.0% = 26.5% × 0.04 × 12.67
Latest: FY2026
Profitability
Net Margin
26.5%
16.2% →26.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.04x
0.04x →0.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
12.67x
14.59x →12.67x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.4 pp over 5 years. Driven by net margin improving (16.2% → 26.5%), leverage falling (14.59x → 12.67x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.2% | 0.04 | 14.59 | 8.5% |
| FY2023 | ₹0Cr | ₹0Cr | 26.7% | 0.04 | 14.52 | 14.2% |
| FY2024 | ₹0Cr | ₹0Cr | 27.6% | 0.04 | 13.82 | 15.7% |
| FY2025 | ₹0Cr | ₹0Cr | 27.8% | 0.04 | 12.71 | 14.1% |
| FY2026 | ₹0Cr | ₹0Cr | 26.5% | 0.04 | 12.67 | 12.0% |
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.