The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin moved from 14.00% in 2019 to 8.31% in 2023.
The average EBIT Margin for the period under analysis was 17.56%, with 2023 and 2021 performing the worst and best, respectively.
In the current year, Fox was able to cover its interest liabilities 6.56 times in the current year compared to 2019 when it was 11.72 times.
The Asset turnover stood at 0.66 times in 2023 from 0.70 in 2019, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of Fox has fluctuated year on year. The revenue increased by 8.03% between
2019 and 2020 and a further 8.25% increase was recorded between 2021 and 2022.
There also occurred an increase of 6.72% between 2022 and 2023 (the current period).
Fox’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 current ratio decreased from 1.93:1 to 2.29:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
Fox is both equity and debt financed.
The debt-to-equity (D/E) ratio has been mixed year on year. The gearing position of the company appears to be low as it stood at 82% in the current year.
