DuPont Decomposition
Why does DCBBANK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.2% = 22.1% × 0.04 × 13.48
Latest: FY2026
Profitability
Net Margin
22.1%
15.9% →22.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.04x
0.04x →0.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
13.48x
11.06x →13.48x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.1 pp over 5 years. Driven by net margin improving (15.9% → 22.1%), leverage rising (11.06x → 13.48x). 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 | 15.9% | 0.04 | 11.06 | 7.1% |
| FY2023 | ₹0Cr | ₹0Cr | 21.9% | 0.04 | 11.47 | 10.2% |
| FY2024 | ₹0Cr | ₹0Cr | 22.3% | 0.04 | 12.43 | 10.6% |
| FY2025 | ₹0Cr | ₹0Cr | 21.6% | 0.04 | 13.50 | 10.8% |
| FY2026 | ₹0Cr | ₹0Cr | 22.1% | 0.04 | 13.48 | 11.2% |
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.