The review of Net Profit Marginwitnessed a fluctuating trend. The Net Profit Margin moved from –4.42% in 2017 to –4.36% in 2021.
The average EBIT Margin for the period under analysis was 5.92%, with 2021 and 2018performing the worst and best, respectively.
In the current year, TWITTER was able to cover its interest liabilities 9.87 times – compared to 2017 when it was 4.29 times.
The Asset turnover stood at 0.34 times in 2021 from 0.35 in 2017,implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of TWITTER has fluctuatedyear on year. The revenue increased by 24.52% between 2017and 2018and a further 7.43% increase was recorded between 2019 and 2020. There also occurred an increase of 36.63% between 2020and 2021 (the current period).
Twitter’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 4.42:1 to 5.89:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
Twitter 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 76% in the current year.
