Key Performance Metrics

❖ The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin declined from 13.39% in 2019 to 12.59% in 2023.
❖ The average EBIT Margin for the period under analysis was 28.96%, with 2019 and 2023 performing the worst and best, respectively.
❖ In the current year, Airtel was able to cover its interest liabilities 2.34 times in the current year–compared to 2019 when it was –1.86 times.
❖ The Asset turnover stood at 0.49 times in 2023 from 0.68 in 2019, 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 14.20% between 2019 and 2020. An increase of 11.48% was recorded between 2021 and 2022, there was a decline of 5.09% between 2022 and 2023 (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 decreased from 0.46:1 to 0.53:1 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 193% in the current year.

Source: Airtel Annual Report