DuPont Decomposition
Why does BANSWRAS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.3% = 2.3% × 1.07 × 2.18
Latest: FY2026
Profitability
Net Margin
2.3%
3.9% →2.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.07x
1.33x →1.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.18x
2.21x →2.18x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.1 pp over 5 years. Driven by net margin declining (3.9% → 2.3%), asset turnover declining (1.33x → 1.07x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.9% | 1.33 | 2.21 | 11.4% |
| FY2023 | ₹0Cr | ₹0Cr | 7.6% | 1.38 | 2.10 | 22.1% |
| FY2024 | ₹0Cr | ₹0Cr | 2.9% | 1.16 | 2.00 | 6.6% |
| FY2025 | ₹0Cr | ₹0Cr | 1.7% | 1.08 | 2.14 | 4.0% |
| FY2026 | ₹0Cr | ₹0Cr | 2.3% | 1.07 | 2.18 | 5.3% |
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.