The review of Net Profit Marginwitnessed a fluctuating trend. The Net Profit Margin improved from29.94% in 2019 to 30.21% in 2023.
The average EBIT Margin for the period under analysis was 37.08%, with 2020 and 2021performing the worst and best, respectively.
In the current year, JP MORGAN covered its interest liabilities 0 times, compared to 2019 when it was 3.51 times.
The Asset turnover stood at 0.04 times in 2023 from 0.04 in 2019, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of JP MORGAN has fluctuated year on year. The revenue increased by 3.66% between 2019 and 2020 and a further 5.79% increase was recorded between 2021 and 2022. There also occurred an increase of 22.85% between 2022 and 2023 (the current period).
JP Morgan chase’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 increased from 0.84:1 to 0.91:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
JP Morgan chase is both equity and debt financed.
The debt-to-equity (D/E) ratio has been increasing year on year. The gearing position of the company appears to be high as it stood at 1.99% in the current year.
