DuPont Decomposition
Why does ICICIAMC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
79.1% = 57.2% × 1.14 × 1.21
Latest: FY2026
Profitability
Net Margin
57.2%
56.4% →57.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.14x
0.96x →1.14x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.21x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.5 pp over 4 years. Driven by asset turnover improving (0.96x → 1.14x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 56.4% | 0.96 | 1.21 | 65.5% |
| FY2024 | ₹0Cr | ₹0Cr | 60.7% | 0.95 | 1.23 | 71.1% |
| FY2025 | ₹0Cr | ₹0Cr | 56.6% | 1.07 | 1.25 | 75.4% |
| FY2026 | ₹0Cr | ₹0Cr | 57.2% | 1.14 | 1.21 | 79.1% |
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.