DuPont Decomposition
Why does ICICIGI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.7% = 9.8% × 0.37 × 4.58
Latest: FY2026
Profitability
Net Margin
9.8%
7.7% →9.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.37x
0.33x →0.37x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.58x
5.53x →4.58x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.8 pp over 5 years. Driven by net margin improving (7.7% → 9.8%), leverage falling (5.53x → 4.58x). 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 | 7.7% | 0.33 | 5.53 | 13.8% |
| FY2023 | ₹0Cr | ₹0Cr | 9.3% | 0.34 | 5.27 | 16.6% |
| FY2024 | ₹0Cr | ₹0Cr | 8.8% | 0.34 | 5.19 | 15.7% |
| FY2025 | ₹0Cr | ₹0Cr | 10.1% | 0.36 | 4.77 | 17.3% |
| FY2026 | ₹0Cr | ₹0Cr | 9.8% | 0.37 | 4.58 | 16.7% |
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.