The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin moved from 18.07% in 2019 to 20.19% in 2023.
The average EBIT Margin for the period under analysis was 29.97%, with 2023 and 2022 performing the worst and best, respectively.
In the current year, Qualcomm was able to cover its interest liabilities 12.28 times – compared to 2019 when it was 12.93 times.
The Asset turnover stood at 0.72 times in 2023 from 0.72 in 2019, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of Qualcomm has fluctuated year on year. The revenue decreased by 3.06%
between 2019 and 2020 and a further 31.68% increase was recorded between 2021 and 2022.
There also occurred a decrease of 18.96% between 2022 and 2023 (the current period).
Qualcomm’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 fair, as current ratio increased from 2.33:1 to 2.56:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
Qualcomm 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 67% in the current year.
