The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin increased from 1.42% in 2019 to 7.15% in 2023.
The EBIT Margin for the period under analysis was 3.06%, with 2020 and 2023 performing the worst and best, respectively.
In the current year, BP covered its interest liabilities 8.9 times in the current year compared to 2019 when it was 6.5 times.
The Capex to Sales stood at 0.07 in 2023 from 0.05 in 2019, implying a high performance of the business in relation to revenue.
Profitability
The revenue of BP has decreased and increased over the years. The revenue decreased 61% between 2019 and 2020. There occurred an increase of 50.1% between 2020 and 2022, and a decrease of 14% from 2022 to 2023 (the current period).
BP’s performance in profitability looks poor as the return on equity also recorded poor performance during the period of analysis
Liquidity
The company’s result in liquidity looks good, as the current ratio has increased from 1.14:1 to 1.16:1 in the last year. Which implies that the company has enough assets to settle its current liabilities.
Receivables days improved over the 5-year period as it took an average of 52 days to recover money owed by customers.
Capital Structure
BP is both equity and debt financed.
The debt-to-equity (D/E) ratio has been stable year on year. The gearing position of the company appears to be low as it stood at 9% in the current year.
