The review of Net Profit Margin witnessed a declining trend. The Net Profit Margin declined from 24.58% in 2019 to 22.45% in 2023.
The average EBIT Margin for the period under analysis was 29.11%, with 2022 and 2023 performing the worst and best, respectively.
In the current year, Factset was able to cover its interest liabilities 11.91 times in the current year- compared to 2019 when it was 26.38 times.
The Asset turnover stood at 0.53 times in 2023 from 0.92 in 2019, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of Factset has increased year on year. The revenue increased by 4.09% between 2019 and 2020 and a further 6.51% increase was recorded between 2020 and 2021. There also occurred an increase of 13.1% between 2022 and 2023 (the current period).
Factset’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 loan to assets increased to 0.05 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
Factset 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 high as it stood at 145% in the current year.
