FirstRand

Key Performance Metrics

  • The review of Net Profit Margin witnessed a declining trend. The Net Profit Margin declined from 32.49% in 2017 to 26.72% in 2021.
  • The average EBIT Margin for the period under analysis was 77.10%, with 2020 and 2017performing the worst and best, respectively.
  • In the current year, Firstrand was able to cover its interest liabilities 2.02 times in the current year- compared to 2017 when it was 1.94 times.
  • The Asset turnover stood at 0.07 times in 2021 from 0.06 in 2017, implying a low performance on Assets of the business in relation to revenue.

Profitability

  • The revenue of Firstrand has fluctuated year on year. The revenue increased by 12.7% between 2017 and 2018 and a further 32.6% increase was recorded between 2018 and 2019. There also occurred a decrease of 13% between 2020 and 2021 (the current period). 
  • Firstrand’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 strong, as loan to deposits decreased from 0.82 to 0.79 on the last year. Which implies that the company has enough assets to settle its current liabilities.

Capital Structure

  • Firstrand 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 105% in the current year.

Source: Firstrand Annual Report

Share This Showroom

Open chat
1
Need Help?
Powered by BFI Insights
Hello 👋
How can we assist you today?