MTN

Key Performance Metrics

  • The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin moved from 7.12% in 2018 to 11.72% in 2022.
  • The average EBIT Margin for the period under analysis was 25.17%, with 2018 and 2022 performing the worst and best, respectively.
  • In the current year, MTN was able to cover its interest liabilities 3.10 times compared to 2019 when it was 2.45 times.
  • The Asset turnover stood at 0.55 times in 2022 from 0.54 in 2018, 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 13.55% between 2019 and 2020 and a further –2.75% decrease was recorded between 2020 and 2021. There also occurred an increase of 32.27% 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 0.83:1 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 Group 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.

Source: MTN Group Annual Report

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