The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin declined from 77.41% in 2019 to 72.67% in 2023.
The average EBIT Margin for the period under analysis was a negative –11.06%, with 2022 and 2023 performing the worst and best, respectively.
In the current year, Naspers covered its interest liabilities 0.10 times, compared to 2019 when it was 0.09 times.
The Asset turnover stood at 0.10 times in 2022 from 0.09 in 2019, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of Naspers has fluctuated year on year. The revenue decreased by 21.57% between 2019 and 2020 and a further 6.07% increase was recorded between 2021 and 2022. There also occurred an decrease of 5.31% between 2022 and 2023 (the current period).
Naspers’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 good, as current ratio increased from 3.34:1 to 5.16:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
Naspers 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 low as it stood at 36% in the current year.