DuPont Decomposition
Why does YESBANK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.9% = 20.9% × 0.04 × 9.19
Latest: FY2026
Profitability
Net Margin
20.9%
7.8% →20.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.04x
0.03x →0.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
9.19x
8.72x →9.19x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.1 pp over 4 years. Driven by net margin improving (7.8% → 20.9%), leverage rising (8.72x → 9.19x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.8% | 0.03 | 8.72 | 1.8% |
| FY2024 | ₹0Cr | ₹0Cr | 9.2% | 0.03 | 9.64 | 3.0% |
| FY2025 | ₹0Cr | ₹0Cr | 16.2% | 0.04 | 8.87 | 5.1% |
| FY2026 | ₹0Cr | ₹0Cr | 20.9% | 0.04 | 9.19 | 6.9% |
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.