The review of Net Profit Margin witnessed a mixed trend. The Net Profit Margin deteriorated from 37.81% in 2019 to 9.48% in 2023.
The average EBIT Margin for the period under analysis was 26.55 % with 2019 and 2020 performing the worst and best, respectively.
In the current year, Seplat ICR was 4.18 times – compared to 2019 when it was 15.55.
The Capex to Sale stood at -0.01 times in 2023 from 0.49 in 2019, implying a poor performance or Assets of the business in relation to revenue.
Profitability
The revenue of Seplat has shown a mixed trend year on year. The revenue decreased by 23.98between 2019 and 2020 and a further 38.22% increase was recorded between 2020 and 2021. There also occurred an increase of 11.5% between 2022 and 2023 (the current period).
Seplat’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/acid test increase from 1.50:1/1.36:1 to 1.36:1/1.29:1 on the last year. Which implies that the company to have enough assets to settle its current liabilities.
Capital Structure
Seplat is both equity and debt financed.
The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be low as it stood at 0.81 in the current year.
