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
10.8% = 21.6% × 0.04 × 13.50
Latest: FY2025
Profitability
Net Margin
21.6%
21.9% →21.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.04x
0.04x →0.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
13.50x
11.47x →13.50x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~11%. Driven by leverage rising (11.47x → 13.50x). 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 | 21.9% | 0.04 | 11.47 | 10.2% |
| FY2025 | ₹0Cr | ₹0Cr | 21.6% | 0.04 | 13.50 | 10.8% |
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.