The review of Net Profit Margin witnessed a mixed trend. The Net Profit Margin improved from -5.68% in 2019 to 24.79% in 2023.
The average EBIT Margin for the period under analysis was 7.3%, with 2020 and 2022 performing the worst and best, respectively.
In the current year, Devon was able to cover its interest liabilities 16.01 times in the current year- compared to 2019 when it was 0.56 times.
The Capital turnover stood at 0.63 times in 2023 from 0.43 in 2019, implying a high performance on Assets of the business in relation to revenue.
Profitability
The revenue of Devon has fluctuated year on year. The revenue decreased by 22.38% between 2019 and 2020 and then an increase of 82% was recorded between 2020 and 2021. There also occurred a decrease of 20.40% between 2022 and 2023 (the current period).
Devon’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 decreased from 2:1 to 1.07:1 in the current year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
Devon is both equity and debt financed.
The debt-to-equity (D/E) ratio has been fluctuating year on year. The gearing position of the company appears to be high as it stood at 100% in the current year.
