The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 11.01% in 2019 to 17.13% in 2023.
The average EBIT Margin for the period under analysis was 19.67%, with 2019 and 2023 performing the worst and best, respectively.
In the current year, Motorola was able to cover its interest liabilities 10.91 times – compared to 2019 when it was 6.32 times.
The Asset turnover stood at 0.79 times in 2023 from 0.7 in 2019, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of Motorola has increased year on year. The revenue decreased by 6% between 2019 and 2020 and a further 10.21% increase was recorded between 2020 and There also occurred an increase of 9.5% between 2022 and 2023 (the current period).
Motorola’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 weak, as current ratio/acid test decreased from 1.24:1/0.76:1 to 1:1/0.61 in the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
Motorola 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 above 88.7% in the current year.
