DuPont Decomposition
Why does SBILIFE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.9% = 2.2% × 0.22 × 26.20
Latest: FY2026
Profitability
Net Margin
2.2%
1.8% →2.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.22x
0.30x →0.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
26.20x
23.52x →26.20x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~13%. Driven by leverage rising (23.52x → 26.20x). 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 | 1.8% | 0.30 | 23.52 | 13.0% |
| FY2023 | ₹0Cr | ₹0Cr | 2.1% | 0.26 | 24.17 | 13.2% |
| FY2024 | ₹0Cr | ₹0Cr | 1.4% | 0.33 | 26.71 | 12.7% |
| FY2025 | ₹0Cr | ₹0Cr | 2.1% | 0.26 | 26.91 | 14.2% |
| FY2026 | ₹0Cr | ₹0Cr | 2.2% | 0.22 | 26.20 | 12.9% |
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.