DuPont Decomposition
Why does ICICIBANK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.5% = 24.9% × 0.08 × 8.04
Latest: FY2025
Profitability
Net Margin
24.9%
24.9% →24.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.08x
0.08x →0.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
8.04x
8.04x →8.04x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹0Cr | 24.9% | 0.08 | 8.04 | 15.5% |
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.