The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 12.03% in 2019 to 16.74% in 2023.
In the current year, Standard Bank was able to cover its interest liabilities 7.3 times – compared to 2019 when it was 5.5 times.
The Asset turnover stood at 0.02 times in 2023 from 0.02 in 2019, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of Standard Bank has increased year on year. The revenue decreased by 7.73% between 2019 and 2020 and a further 7.53% increase was recorded between 2020 and 2021. There also occurred a/an increase of 88.11 % between 2022 and 2023 (the current period).
Standard Bank performance in profitability looks good as the return on equity also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks poor, as current ratio increased from 0.79 to 0.84 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
Standard Bank 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 337% in the current year.
