The review of the Net Profit Margin witnessed a declining trend. The Net Profit Margin moved from 13.96% in 2020 to 325.15% in 2024.
The average EBIT Margin for the period under analysis was 359.42%, with 2022 and 2021 performing the worst and best, respectively.
The Asset turnover stood at 0.07 times in 2024 from 0.10 in 2020, implying a high performance on Assets of the business in relation to revenue.
Profitability
The revenue of CORNERSTONE INSURANCE has fluctuated year on year. The revenue decreased by 13.2% between 2020 and 2021 and a further 45.9% decrease was recorded between 2021 and 2022. There occurred no change between 2023 and 2024 (the current period).
CORNERSTONE INSURANCE’s profitability performance looks good as the return on capital employed also recorded good performance during the analysis period.
Liquidity
The company’s result in liquidity looks strong, as the current ratio decreased from 5.75 to 5.69 in the last year. This implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
CORNERSTONE INSURANCE is both equity and debt-financed.
The debt-to-equity (D/E) ratio has been decreasing year on year. The company’s gearing position appears to be high, as it stood at 100.8% in the current year.
