Naspers

Key Performance Metrics

  • The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin declined/improved from 35.6% in 2017 to 122.5% in 2021.
  • The average EBIT Margin for the period under analysis was 157%, with 2017 and 2018 performing the worst and best, respectively.
  • In the current year, Naspers was able to cover its interest liabilities 27.95 times in the current year- compared to 2017 when it was 9.68 times.
  • The Asset turnover stood at 0.13 times in 2021 from 0.56 in 2017, implying a low performance on Assets of the business in relation to revenue.

Profitability

  • The revenue of Naspers has increased year on year. The revenue decreased by 51% between 2017 and 2018 and a further 10.3% increase was recorded between 2018 and 2019. There also occurred an increase of 48.3% between 2020 and 2021 (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 poor, as current ratio/acid test decreased from 4.31:1/4.19:1 to 1.78:1/1.69:1 on the last year. Which implies that the company does not have 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 32% in the current year.

Source: Naspers Annual Report

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