The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin has increased and declined year on year. It moved on average from 8.38% in 2019 to 8.29% in 2023.
The average EBITDA Margin for the period under analysis was 14.06%, with 2020 and 2022 performing the worst and best,
In the current year, AIG was able to cover its interest liabilities 4.4 times in the current year- compared to 2019 when it was 4.73 times.
The Asset turnover stood at 0.09 times in 2023 and 0.09 in 2019, implying a low on Assets of the business in relation to revenue.
Profitability
The revenue of AIG has fluctuated year on year. The revenue decreased by 12% between 2019 and 2020 and a further 19% increase was recorded between 2020 and There also occurred a decrease of 14% between 2022 and 2023 (the current period).
AIG’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Capital Structure
AIG 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 high as it stood at 9.51 in the current year.
