DuPont Decomposition
Why does UCOBANK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.3% = 22.4% × 0.03 × 11.91
Latest: FY2026
Profitability
Net Margin
22.4%
9.7% →22.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.03x
0.04x →0.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
11.91x
11.40x →11.91x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.4 pp over 5 years. Driven by net margin improving (9.7% → 22.4%), leverage rising (11.40x → 11.91x). 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 | 9.7% | 0.04 | 11.40 | 4.0% |
| FY2023 | ₹0Cr | ₹0Cr | 18.5% | 0.03 | 11.74 | 7.1% |
| FY2024 | ₹0Cr | ₹0Cr | 15.5% | 0.03 | 11.89 | 6.1% |
| FY2025 | ₹0Cr | ₹0Cr | 21.4% | 0.03 | 11.69 | 7.9% |
| FY2026 | ₹0Cr | ₹0Cr | 22.4% | 0.03 | 11.91 | 8.3% |
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.