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
13.2% = 24.3% × 0.05 × 10.64
Latest: FY2025
Profitability
Net Margin
24.3%
33.2% →24.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.05x
0.06x →0.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
10.64x
9.10x →10.64x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.9 pp over 2 years. Driven by net margin declining (33.2% → 24.2%), leverage rising (9.10x → 10.64x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 33.2% | 0.06 | 9.10 | 17.1% |
| FY2025 | ₹0Cr | ₹0Cr | 24.3% | 0.05 | 10.64 | 13.2% |
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.