The review of Net Profit Marginwitnessed a fluctuating trend. The Net Profit Margin moved from5.71% in 2019 to 6.02% in 2023.
The average EBIT Margin for the period under analysis was 8.36%, with 2019 and 2022performing the worst and best, respectively.
In the current year, UNITED HEALTH was able to cover its interest liabilities 9.73 times – compared to 2019 when it was 11.32 times.
The Asset turnover stood at 1.33 times in 2023 from 1.43in 2019,implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of UNITED HEALTH has improvedyear on year. The revenue increased by 6.19% between 2019 and 2020 and a further 12.71% increase was recorded between 2021 and 2022. There also occurred an increase of 14.64% between 2022 and 2023 (the current period).
United Health’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 increased from 0.77:1 to 0.79:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
United Health is both equity and debt financed.
The debt-to-equity (D/E) ratio has been fluctuating year on year. The gearing position of the company appears to be high as it stood at 70% in the current year.
