DuPont Decomposition
Why does ICICIBANK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.9% = 24.3% × 0.08 × 8.03
Latest: FY2026
Profitability
Net Margin
24.3%
26.1% →24.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.08x
0.07x →0.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
8.03x
9.13x →8.03x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~15%. Driven by net margin declining (26.1% → 24.3%), leverage falling (9.13x → 8.03x). 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 | 26.1% | 0.07 | 9.13 | 15.9% |
| FY2024 | ₹0Cr | ₹0Cr | 28.9% | 0.06 | 9.23 | 17.3% |
| FY2025 | ₹0Cr | ₹0Cr | 24.8% | 0.08 | 8.42 | 16.3% |
| FY2026 | ₹0Cr | ₹0Cr | 24.3% | 0.08 | 8.03 | 14.9% |
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.