DuPont Decomposition
Why does PNC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-20.6% = -33.3% × 0.54 × 1.15
Latest: FY2026
Profitability
Net Margin
-33.3%
-0.8% →-33.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.54x
0.46x →0.54x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.15x
1.27x →1.15x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 20.1 pp over 5 years. Driven by net margin declining (-0.8% → -33.3%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -0.8% | 0.46 | 1.27 | -0.5% |
| FY2023 | ₹0Cr | ₹-0Cr | -21.4% | 0.20 | 1.28 | -5.4% |
| FY2024 | ₹0Cr | ₹0Cr | 4.2% | 0.58 | 1.33 | 3.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -2.8% | 0.33 | 1.38 | -1.3% |
| FY2026 | ₹0Cr | ₹-0Cr | -33.3% | 0.54 | 1.15 | -20.6% |
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.