DuPont Decomposition
Why does PNB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.8% = 30.9% × 0.03 × 13.89
Latest: FY2025
Profitability
Net Margin
30.9%
30.9% →30.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.03x
0.03x →0.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
13.89x
13.89x →13.89x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹0Cr | 30.9% | 0.03 | 13.89 | 13.8% |
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.