The review of Net Profit Margin witnessed a declining trend. The Net Profit Margin declined from 17.89% in 2019 to 16.84% in 2023.
The average EBIT Margin for the period under analysis was 75.36%, with 2020 and 2019 performing the worst and best, respectively.
In the current year, Firstrand was able to cover its interest liabilities 1.54 times in the current year- compared to 2019 when it was 1.71 times.
The Asset turnover stood at 0.07 times in 2023 from 0.07 in 2019, 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 decreased by 6.93% between 2019 and 2020 and a further 6.20% increase was recorded between 2021 and 2022. There also occurred a increase of 14.43% between 2022 and 2023 (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 stagnant, as loan to deposits stayed at 0.77 to 0.77 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 139% in the current year.
