Naspers

Key Performance Metrics

  • The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin declined from 134.06% in 2018 to 63.90% in 2022.
  • The average EBIT Margin for the period under analysis was a negative 7.3%, with 2020 and 2022 performing the worst and best, respectively.
  • In the current year, Naspers was able to cover its interest liabilities -0.27 times – compared to 2018 when it was a negative 2.58 times.
  • The Asset turnover stood at 0.10 times in 2022 from 0.10 in 2018, 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 2018 and 2019 and a further 48.31% increase was recorded between 2019 and 2020. There also occurred an increase of 7.69% between 2021 and 2022 (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 4.31:1/3.32:1 to 5.09:1/5.10:1 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 92% in the current year.

Source: Naspers Annual Report

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