The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 6.4% in 2019 to 8.0% in 2023.
The average EBIT Margin for the period under analysis was 15.96% with 2020 and 2023 performing the worst and best, respectively.
In the current year, UBA ICR was 6.3 times in the current year- compared to 2019 when it was 4.8 times
The Asset Turnover stood at 0.10 times in 2023 from 0.08 times in 2019, implying a poor performance or Assets of the business in relation to revenue.
Profitability
The revenue of UBA has increased year on year. The revenue increased by 10.8% between 2019 and 2020 and a further 20.3% increase was recorded between 2021 and 2022. There also occurred an increase of 164% between 2022 and 2023 (the current period).
UBA 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 loan to deposit moved from 0.44:1 to 0.37:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
UBA 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 0.63 in the current year.