The review of Net Profit Margin witnessed a mixed trend. The Net Profit Margin improved from 1.57% in 2019 to 9.48% in 2023.
The average EBIT Margin for the period under analysis was 9.34 % with 2022 and 2019 performing the worst and best, respectively.
In the current year, Mercedes Benz Interest Cover was 80.94 times – compared to 2019 when it was 5.35 times
The Asset turnover stood at 0.59 times in 2023 from 0.59 in 2019, implying a low performance or Assets of the business in relation to revenue.
Profitability
The revenue of Mercedes Benz has shown a mixed trend year on year. The revenue decreased by 29.50% between 2019 and 2020 and a further 9.95% increase was recorded between 2020 and 2021. There also occurred an increase of 2.13% between 2022 and 2023 (the current period).
Mercedes Benz 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 current ratio/acid test increase from 1.21:1/0.93:1 to 1.26:1/0.93:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
Mercedes Benz 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 1.83 in the current year.
