The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin moved from 0% in 2020 to 3.6% in 2024.
The average EBIT Margin for the period under analysis was 8.1%.
In the current year, UNITED HEALTH was able to cover its interest liabilities 8.3 times – compared to 2020 when it was 5 times.
The Asset turnover stood at 1.34 times in 2024 from 1.30 in 2020, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of UNITED HEALTH has improved year on year. The revenue increased by 9% between 2020 and 2021 and a further 12.71% increase was recorded between 2021 and 2022. There also occurred an increase of 7.7% between 2023 and 2024 (the current period).
UNITED HEALTH’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, as current ratio increased from 0.79:1 to 0.83:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
UNITED HEALTH is both equity and debt financed.
The debt-to-equity (D/E) ratio has been depreciating year on year. The gearing position of the company appears to be high as it stood at 1.99% in the current year.
