DuPont Decomposition
Why does CSBBANK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.9% = 21.9% × 0.05 × 11.79
Latest: FY2026
Profitability
Net Margin
21.9%
32.8% →21.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.05x
0.06x →0.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
11.79x
9.56x →11.79x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.3 pp over 5 years. Driven by net margin declining (32.8% → 21.9%), leverage rising (9.56x → 11.79x). 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 | 32.8% | 0.06 | 9.56 | 17.3% |
| FY2023 | ₹0Cr | ₹0Cr | 33.2% | 0.06 | 9.10 | 17.1% |
| FY2024 | ₹0Cr | ₹0Cr | 27.5% | 0.06 | 9.48 | 14.9% |
| FY2025 | ₹0Cr | ₹0Cr | 24.3% | 0.05 | 10.64 | 13.2% |
| FY2026 | ₹0Cr | ₹0Cr | 21.9% | 0.05 | 11.79 | 12.9% |
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.