The review of Net Profit Margin witnessed a mixed trend. The Net Profit Margin improved from 1% in 2019 to 2.4% in 2023.
The average EBIT Margin for the period under analysis was 2%, with 2020 and 2022 performing the worst and best, respectively.
In the current year, Ford covered its interest liabilities 4.06 times, compared to 2019 when it was 0.34 times.
The Capital turnover stood at 0.66 times in 2023 from 0.6 in 2019, implying a low performance on Capital of the business in relation to revenue.
Profitability
The revenue of Ford has decreased then increased year on year. The revenue decreased by 18.45% between 2019 and 2020 and a further 7.23% increase was recorded between 2020 and 2021. There also occurred an increase of 11.47% between 2022 and 2023 (the current period).
Ford’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 strong, as the current ratio-maintained stability at 1.20:1. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
Ford 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 349% in the current year.
