The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin reduced from 28.49% in 2019 to 25.22% in 2023.
The average EBIT Margin for the period under analysis was 31.522%, with 2020 and 2021 performing the worst and best, respectively.
In the current year, Bank of America covered its debt 0.11 times, compared to 2019 when it was 0.11 times.
The Asset turnover stood at 0.03 times in 2023 from 0.04 in 2019, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of Bank of America has shown a mixed trend year on year. The revenue decreased by 6.26% between 2019 and 2020 and a further 6.55% increase was recorded between 2021 and 2022. There also occurred a decrease of 3.82% between 2022 and 2023 (the current period).
Bank of America’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 loan to deposits decreased from 0.83:1 to 0.80:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
Bank of America 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 227% in the current year.
