Airtel

Key Performance Metrics

  • The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin declined from 13.84% in 2019 to 14.27% 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 21% between 2018 and 2019 and a further 14.20% increase was recorded between 2019 and 2020. There also occurred an increase of 11.48% 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 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

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