DuPont Decomposition
Why does KOTAKBANK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.1% = 29.0% × 0.09 × 5.59
Latest: FY2025
Profitability
Net Margin
29.0%
29.0% →29.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.09x
0.09x →0.09x
Revenue per ₹ of assets
Leverage
Equity Multiplier
5.59x
5.59x →5.59x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹0Cr | 29.0% | 0.09 | 5.59 | 14.1% |
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.