The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin improved from 28.2% in 2019 to 29.5% in 2023.
The average EBIT Margin for the period under analysis was 57.48%, with 2020 and 2022 performing the worst and best, respectively.
In the current year, Capitec was able to cover its interest liabilities 5.7 times in the current year- compared to 2019 when it was 5.0 times.
The Asset turnover stood at 0.16 times in 2023 from 0.18 in 2019, implying a high performance on Assets of the business in relation to revenue.
Profitability
The revenue of Capitec has increased year on year. The revenue decreased by 8.8% between 2019 and 2020 and a further 7.9% decrease was recorded between 2020 and 2021. There was then a increase of 10.2% between 2022 and 2023 (the current period).
Capitec’s performance in profitability looks good as the return on equity also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks poor, as loan to deposits decreased from 0.85 to 0.84 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
Capitec is both equity and debt financed.
The debt-to-equity (D/E) ratio has maintained stability year on year. The gearing position of the company appears to be low as it stood at 12% in the current year.
