DuPont Decomposition
Why does DHANBANK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.0% = 12.6% × 0.04 × 14.41
Latest: FY2026
Profitability
Net Margin
12.6%
6.8% →12.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.04x
0.04x →0.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
14.41x
15.33x →14.41x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.0 pp over 5 years. Driven by net margin improving (6.8% → 12.6%), leverage falling (15.33x → 14.41x). 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 | 6.8% | 0.04 | 15.33 | 4.0% |
| FY2023 | ₹0Cr | ₹0Cr | 9.0% | 0.04 | 15.74 | 5.1% |
| FY2024 | ₹0Cr | ₹0Cr | 10.0% | 0.04 | 15.50 | 5.6% |
| FY2025 | ₹0Cr | ₹0Cr | 10.2% | 0.04 | 12.86 | 4.8% |
| FY2026 | ₹0Cr | ₹0Cr | 12.6% | 0.04 | 14.41 | 7.0% |
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.