DuPont Decomposition
Why does CENTRALBK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.6% = 22.0% × 0.04 × 14.13
Latest: FY2026
Profitability
Net Margin
22.0%
8.5% →22.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.04x
0.03x →0.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
14.13x
14.06x →14.13x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.8 pp over 5 years. Driven by net margin improving (8.5% → 22.0%). 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 | 8.5% | 0.03 | 14.06 | 3.8% |
| FY2023 | ₹0Cr | ₹0Cr | 10.6% | 0.04 | 13.93 | 5.8% |
| FY2024 | ₹0Cr | ₹0Cr | 15.1% | 0.04 | 13.83 | 8.2% |
| FY2025 | ₹0Cr | ₹0Cr | 20.1% | 0.04 | 13.03 | 10.7% |
| FY2026 | ₹0Cr | ₹0Cr | 22.0% | 0.04 | 14.13 | 11.6% |
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.