The review of Net Profit Margin witnessed a mixed trend. Net Profit Margin reduced from 22.75% in 2020 to 19.18% in 2024.
The average EBIT Margin for the period under analysis was 25.90%, with 2024 and 2020 performing the worst and best, respectively
In the current year, Cisco was able to cover its interest liabilities 12.11 times in the current year- compared to 2029 when it was 23.28 times.
The Asset turnover stood at 0.43 times in 2024 from 0.52 in 2020, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of Cisco has been increasing year on year. The revenue increased by 1.05% between 2020 and 2021 and a further increase of 3.5% between 2021 and 2022. There also occurred a decrease of 5.6% between 2022 and 2024 (the current period).
Cisco’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks good, although current ratio from 1.72:1 to 0.91:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
Cisco is both equity and debt financed.
The debt-to-equity (D/E) ratio has been mixed year on year. The gearing position of the company appears to be high as it stood at 177% in the current year.
