The review of Net Profit Margin witnessed a steady trend. The Net Profit Margin improved from 4.67% in 2019 to 5.07% in 2023.
The average EBIT Margin for the period under analysis was 8.60%, with 2019 and 2021 performing the worst and best, respectively.
In the current year, Ball was still able to cover its interest liabilities 2.77 times in the current year- compared to 2019 when it was 2.94 times.
The Capital employed stood at 3.49 times in 2023 from 3.81 in 2019, implying a high performance on capital of the business in relation to revenue.
Profitability
The revenue of Ball has increased year on year. The revenue increased by 2.7% between 2019 and 2020 and a further 17.2% increase was recorded between 2020 and 2021. There also occurred an 8.6% decrease between 2022 and 2023 (the current period).
Ball’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 poor, as the current ratio/acid test decreased from 0.88:1/0.65:1 to 0.79:1/0.54:1 in the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
Ball is both equity and debt financed.
The debt-to-equity (D/E) ratio has been increasing year on year. The gearing position of the company appears to be high as it stood at 403% in the current year.
