The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 39.1% in 2019 to 40.2% in 2023.
The average EBIT Margin for the period under analysis was 46.74%, with 2020 and 2023 performing the worst and best, respectively.
In the current year, GTCO was able to cover its interest liabilities 7.1 times in the current year- compared to 2019 when it was 6.5 times.
The Asset turnover stood at 0.10 times in 2023 from 0.07 in 2019, implying a high performance on of the business in relation to revenue.
Profitability
The revenue of GTCO has increased year on year. The revenue increased by 7.1% between 2019 and 2020 and a further 9.3% increase was recorded between 2021 and 2022. There also occurred an increase of 184.5% between 2022 and 2023 (the current period).
GTCO’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 weak, as loan to deposits decreased from 0.41 to 0.32 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
GTCO is both equity and debt financed.
The debt-to-equity (D/E) ratio has been fluctuating year on year. The gearing position of the company appears to be low as it stood at 49% in the current year.
