The review of the Net Profit Margin witnessed a declining trend. The Net Profit Margin moved from -8.31% in 2020 to 11.35% in 2024.
The average EBIT Margin for the period under analysis was 15.59%, with 2020 and 2024 performing the worst and best, respectively.
In the current year, E-TRANZACT was able to cover its interest liabilities 248.23 times in the current year.
Asset turnover decreased to 1.25 times in 2024 from 3.35 times in 2020, implying a low performance on the business’s assets concerning revenue.
Profitability
The revenue of E-TRANZACT has fluctuated year on year. The revenue increased by 3.78% between 2020 and 2021 and a further 4.41% decrease was recorded between 2021 and 2022. There also occurred an decrease of 11.83% between 2023 and 2024 (the current period).
E – TRANZACT’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 weak, as the current ratio increased from 1.58 to 2.33 in the last year. This implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
E – TRANZACT is both equity and debt financed.
The debt-to-equity (D/E) ratio has been decreasing year on year. The gearing position of the company appears to be low as it stood at 61.4% in the current year.
