The review of Net Profit Margin witnessed a declining trend. The Net Profit Margin moved from –7.91% in 2019 to 4.17% in 2023.
The average EBIT Margin for the period under analysis was 4.48%, with 2020 and 2022 performing the worst and best, respectively.
In the current year, Guinness Nigeria was able to cover its interest liabilities 3.63 times – compared to 2019 when it was 8.09 times.
The Asset turnover stood at 1.00 times in 2023 from 0.94 in 2019, implying a high performance on Assets of the business in relation to revenue.
Profitability
The revenue of Guinness Nigeria has increased year on year. The revenue increased by –8.03% between 2019 and 2020 and a further –20.63% decrease was recorded between 2020 and 2021. There also occurred an increase of 10.94% between 2022 and 2023 (the current period).
Guinness 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 poor, as current ratio decreased from 0.92:1 to 0.77:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
Guinness Nigeria 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 high as it stood at 328% in the current year.
