The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 3.8% in 2019 to 4.7% in 2023.
The average EBIT Margin for the period under analysis was 7.5%, with 2019 and 2023 performing the worst and best, respectively.
In the current year, Flour Mill Nigeria was able to cover its interest liabilities 1.4 times in the current year- compared to 2019 when it was 2.7 times.
The Asset turnover stood at 0.70 times in 2023 from 0.62 in 2019, implying a high performance on Assets of the business in relation to revenue.
Profitability
The revenue of Flour Mill Nigeria has increased year on year. The revenue decreased by 7.2% between 2019 and 2020 and maintained 9.5% increase between 2021 and 2022. There also occurred an increase of 32% between 2022 and 2023 (the current period).
Flour Mill Nigeria’s performance in profitability looks good as the return on equity also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks strong, as current ratio increased from 1.6 to 1.7 on the last year. Which implies that the company enough assets to settle its current liabilities.
Capital Structure
Flour Mill Nigeria 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 2.15 in the current year.
