DuPont Decomposition
Why does UJJIVANSFB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.2% = 13.9% × 0.09 × 8.44
Latest: FY2026
Profitability
Net Margin
13.9%
-19.4% →13.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.09x
0.09x →0.09x
Revenue per ₹ of assets
Leverage
Equity Multiplier
8.44x
8.42x →8.44x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 24.9 pp over 5 years. Driven by net margin improving (-19.4% → 13.9%). 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 | -19.4% | 0.09 | 8.42 | -14.8% |
| FY2023 | ₹0Cr | ₹0Cr | 33.5% | 0.10 | 7.92 | 26.1% |
| FY2024 | ₹0Cr | ₹0Cr | 31.6% | 0.10 | 7.20 | 22.8% |
| FY2025 | ₹0Cr | ₹0Cr | 16.2% | 0.09 | 7.84 | 11.9% |
| FY2026 | ₹0Cr | ₹0Cr | 13.9% | 0.09 | 8.44 | 10.2% |
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.