The review of Gross Profit Margin/Net Profit Marginwitnessed a surging trend. The Gross Profit Margin/Net Profit Margin declined/improved from58.53%/11.56%in 2019 to55.18%/14.27% in 2023.
In the current year, Abbot was able to cover its interest liabilities 10.17 times compared to 2019 when it was 6.76 times.
The Return on capital employed stood at 10.84%in 2023 from 7.95% in 2019, implying a high performance or Capital employed of the business in relation to revenue.
Profitability
The revenue of Abbot has increased and decreased year on year. The revenue increased by 8%between 2019and 2020and a further 24% increase was recorded between 2020and 2021. There also occurred adecrease of 8% between 2022and 2023 (the current period).
Abbot’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/acid test decreased from 72:1/1.30:1 to 1.68:1/1.19:1 in the current year. Nevertheless, the company still has enough assets to settle its current liabilities.
Cash conversion cycle declined over the 5-year period as it took an average of 30 days to convert assets to cash.
Capital Structure
Abbot is both equity and debt financed.
The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be low as it stood at 0.35% in the current year.
