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

8.0% = 21.6% × 0.03 × 11.73

Latest: FY2025

Profitability

Net Margin

21.6%

21.6% →21.6%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.03x

0.03x →0.03x

Revenue per ₹ of assets

Leverage

Equity Multiplier

11.73x

11.73x →11.73x

Assets funded by equity vs debt

Historical Decomposition

Last 1 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY2025₹0Cr₹0Cr21.6%0.0311.738.0%

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)

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.