The review of Net Profit Margin witnessed a mixed trend. Net Profit Margin improved from 22.39% in 2019 to 22.13% in 2023.
The average EBIT Margin for the period under analysis was 26.84%, with 2021 and 2020 performing the worst and best, respectively.
In the current year, Cisco was able to cover its interest liabilities 35.20 times in the current year- compared to 2019 when it was 16.55 times.
The Capital turnover stood at 0.82 times in 2023 from 0.70 in 2019, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of Cisco has been increasing year on year. The revenue decreased by 5% between 2019 and 2020 but increase by 1% between 2020 and There also occurred an increase of 10.6% between 2022 and 2023 (the current period).
Cisco’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 good, although current ratio/acid test decreased from 1.51:1/1.46:1 to 1.38:1/1.27:1 on the last year. Which implies that the company [does not have]/has enough assets to settle its current liabilities.
Capital Structure
Cisco 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 130% in the current year.
