The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 2.42% in 2019 to 5.8% in 2021.
The average EBIT Margin for the period under analysis was 32.49%, with 2019 and 2021 performing the worst and best, respectively.
In the current year, Impala Platinum was able to cover its interest liabilities 16.91 times – compared to 2019 when it was 3.0 times.
The Asset turnover stood at 0.66 times in 2023 from 0.73 in 2019, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of Impala Platinum has increased year on year. The revenue increased by 43.62% between 2019 and 2020 and a further 85.5% increase was recorded between 2020 and 2021. There also occurred an increase of 9.91% between 2022 and 2023 (the current period).
Impala Platinum’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 good, as the current ratio/acid test increased from 2.36:1/1.21:1 to 3.83:1/2.46:1 in the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
Impala Platinum 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 low as it stood at 34% in the current year.
