Eastman

Key Performance Metrics

  • The review of Net Profit Margin witnessed a mixed trend. The Net Profit Margin declined from 8.22% in 2019 to 9.73% in 2023.
  • The average EBIT Margin for the period under analysis was 11.67%, with 2020 and 2023 performing the worst and best, respectively.
  • In the current year, Eastman was able to cover its interest liabilities 6.06 times in the current year- compared to 2019 when it was 5.14 times.
  • The Asset turnover stood at 0.63 times in 2023 from 0.58 in 2019, implying a high performance on Assets of the business in relation to revenue.

Profitability

  • The revenue of Eastman has fluctuated year on year. The revenue Deceased by 8.63% between 2019 and 2020 and a further 23.64% increase was recorded between 2020 and There also occurred a decrease of 12.95% between 2022 and 2023 (the current period).
  • Eastman’s performance in profitability looks good as the return on capital employed also recorded a good performance during the period of analysis.

Liquidity

  • The company’s result in liquidity looks good, although the current ratio decreased from 1.86:1 to 1.35:1 on the last year. Which implies that the company still has enough assets to settle its current liabilities.

Capital Structure

  • Eastman 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 165% in the current year.

 

Source: Eastman Annual Report

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