The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin decreased from 18.47% in 2020 to 17.82% in 2024.
The average EBIT Margin for the period under analysis was 22.07%.
In the current year, P & G was able to cover its interest liabilities 20.05 times – compared to 2020 when it was 33.78 times.
The Asset turnover stood at 0.67 times in 2024 from 0.59 in 2020, implying a high performance on Assets of the business in relation to revenue.
Profitability
The revenue of P & G has fluctuated year on year. The revenue increased by 16.57% between 2020 and 2021 and a further 22.70% increase was recorded between 2022 and 2023. There also occurred an increase of 24.16% between 2023 and 2024 (the current period).
P & G’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 poor, although current ratio increased from 0.63:1 to 0.73:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
P & G 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 49.98% in the current year.
