DuPont Decomposition
Why does UBL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.1% = 5.1% × 1.05 × 1.88
Latest: FY2025
Profitability
Net Margin
5.1%
0.2% →5.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.05x
0.65x →1.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.88x
1.58x →1.88x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.9 pp over 3 years. Driven by net margin improving (0.2% → 5.1%), asset turnover improving (0.65x → 1.05x), leverage rising (1.58x → 1.88x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.2% | 0.65 | 1.58 | 0.3% |
| FY2024 | ₹0Cr | ₹0Cr | 1.7% | 0.68 | 1.69 | 1.9% |
| FY2025 | ₹0Cr | ₹0Cr | 5.1% | 1.05 | 1.88 | 10.1% |
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.