Airtel

Key Performance Metrics

  • The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 13.84% in 2019 to 16.02% in 2022.
  • The average EBIT Margin for the period under analysis was 27.84%, with 2019 and 2022 performing the worst and best, respectively.
  • In the current year, Airtel was able to cover its interest liabilities 3.48times in the current year- compared to 2019 when it was 1.86 times.
  • The Asset turnover stood at 0.46 times in 2021 from 0.68 in 2017, implying a low performance on Assets of the business in relation to revenue.

Profitability

  • The revenue of Airtel has increased year on year. The revenue increased by 11.2% between 2019 and 2020 and a further 14.2% increase was recorded between 2020 and 2021. There also occurred an increase of 20.6% between 2021 and 2022 (the current period). 
  • Airtel’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 strong, as current ratio increased from 0.54:1 to 0.65:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.

Capital Structure

  • Airtel 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 184% in the current year.

Source: Airtel Annual Report

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