The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin moved from 115.93% in 2019 to 11.98% in 2023.
The average EBIT Margin for the period under analysis was 20.60% with 2023 and 2019 performing the worst and best, respectively.
In the current year, Unilever covered its interest liabilities 14.22 times – compared to 2019 when it was 20.22 times.
The Asset turnover stood at 0.78 times in 2023 from 0.08 in 2019, implying a high performance or Assets of the business in relation to revenue.
Profitability
The revenue of Unilever has fluctuated year on year. The revenue increased by 75.84% between 2019 and 2020 and a further 3.39% increase was recorded between 2020 and 2021. There also occurred a decrease of 0.78% between 2022 and 2023 (the current period).
Unilever performance in profitability looks good as the return on capital employed also recorded a good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks poor, as the current ratio/acid test decreased from 78:1/0.58:1 to 0.76:1/0.54:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities regardless.
Capital Structure
Unilever 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 2.62 in the current year.
