The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin moved from 22.24% in 2019 to 17.05% in 2023.
The average EBIT Margin for the period under analysis was 55.54%, with 2021 and 2023 performing the worst and best, respectively.
In the current year, Morgan Stanley was able to cover its interest liabilities 1.28 times – compared to 2019 when it was 1.91 times.
The Asset turnover stood at 0.05 times in 2023 from 0.05 in 2019, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of Morgan Stanley has increased year on year. The revenue increased by 17.38% between 2019 and 2020 and a further 22.56% increase was recorded between 2020 and 2021. There also occurred an increase of 0.89% between 2022 and 2023 (the current period).
Morgan Stanley’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 strong. Which implies that the has enough assets to settle its current liabilities.
Capital Structure
Morgan Stanley 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 90% in the current year.