The review of Net Profit Margin witnessed a mixed trend. The Net Profit Margin moved from 18.18% in 2019 to 17.46% in 2023.
The average EBIT Margin for the period under analysis was 236%, with 2020 and 2021 performing the worst and best, respectively.
In the current year, Nasdaq was able to cover its interest liabilities 5.94 times – compared to 2019 when it was 13 times.
The Asset turnover stood at 0.24 times in 2023 from 0.36 in 2019, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of Nasdaq has fluctuated year on year. The revenue increased by 32.10% between 2019 and 2020 and a further 4.64% increase was recorded between 2020 and 2021. There also occurred a decrease of 2.6% between 2022 and 2023 (the current period).
Nasdaq’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 the current ratio decreased from 1.56:1 to 1.01:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
Nasdaq 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 101% in the current year.
