The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin moved from 14.6% in 2019 to 19.8% in 2023.
The average EBIT Margin for the period under analysis was 39.52%, with 2019 and 2022 performing the worst and best, respectively.
In the current year, MTN was able to cover its interest liabilities 6.4 times – compared to 2019 when it was 5.8 times.
The Asset turnover stood at 0.71 times in 2023 from 0.65 in 2019, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of MTN has fluctuated year on year. The revenue increased by 8.3% between 2019 and 2020 and a further 15.4% increase was recorded between 2020 and 2021. There also occurred an increase of 22.1% between 2021 and 2022 (the current period).
MTN’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 decreased from 0.98:1 to 0.96:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
MTN is both equity and debt financed.
The debt-to-equity (D/E) ratio has been mixed year on year. The gearing position of the company appears to be low as it stood at 220% in the current year.
