The company’s profitability review shows a striking upward trend in Net Profit Margin, rising from 13.96% in 2020 to an extraordinary 325.16% in 2024. This indicates a dramatic improvement in bottom‑line efficiency, though such an unusually high margin may also reflect extraordinary or non‑recurring gains rather than purely operational performance.
The average EBIT Margin during the analysis period stood at 29.36%, highlighting solid operating profitability.
However, asset turnover declined sharply from 0.43 times in 2020 to just 0.08 times in 2024. This suggests that the business is generating far less revenue relative to its asset base, pointing to inefficiencies in asset utilization despite the strong profit margins
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Profitability
Cornerstone Insurance’s revenue trend has been volatile over the analysis period. Between 2020 and 2021, revenue fell by 13.2%, followed by a sharper decline of 45.9% between 2021 and 2022. In the current period (2023–2024), revenue remained flat, showing no change compared to the prior year.
Despite these fluctuations and declines in top‑line performance, profitability looks good, as the return on capital employed recorded strong results during the analysis period. This suggests that the company has been able to manage its resources efficiently and generate healthy returns from its capital base, even in the face of revenue stagnation.
Liquidity
The company’s liquidity position remains very strong, even though the current ratio declined slightly from 5.75:1 to 5.69:1 in the last year. With the ratio still well above 1:1, the business clearly has more than enough current assets to cover its short‑term liabilities. This reflects a comfortable liquidity buffer and strong financial flexibility, suggesting that the company is well‑positioned to meet obligations without strain, despite the minor downward movement.
Capital Structure
Cornerstone Insurance is financed through a mix of equity and debt.
The debt-to-equity (D/E) ratio has shifted year on year, reflecting changes in the company’s capital structure. In the current year, the gearing position is high at 101%, meaning debt financing slightly outweighs equity
