DuPont Decomposition
Why does CUB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.6% = 34.3% × 0.04 × 9.18
Latest: FY2026
Profitability
Net Margin
34.3%
28.4% →34.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.04x
0.04x →0.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
9.18x
9.34x →9.18x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.0 pp over 5 years. Driven by net margin improving (28.4% → 34.3%). 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 | 28.4% | 0.04 | 9.34 | 11.5% |
| FY2023 | ₹0Cr | ₹0Cr | 31.5% | 0.04 | 8.93 | 12.6% |
| FY2024 | ₹0Cr | ₹0Cr | 35.5% | 0.04 | 8.43 | 12.1% |
| FY2025 | ₹0Cr | ₹0Cr | 35.0% | 0.04 | 8.20 | 11.9% |
| FY2026 | ₹0Cr | ₹0Cr | 34.3% | 0.04 | 9.18 | 12.6% |
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.