The review of Net Profit Marginwitnessed a fluctuating trend. The Net Profit Margin moved from5.99% in 2019 to 7.37% in 2023.
The average EBIT Margin for the period under analysis was 11.01%, with 2020 and 2021 performing the worst and best, respectively.
In the current year, UPS was able to cover its interest liabilities 10.58 times – compared to 2019 when it was 9.66 times.
The Asset turnover stood at1.28times in 2023 from 1.37in 2019,implying alow performance on Assets of the business in relation to revenue.
Profitability
The revenue of UPS has fluctuatedyear on year. The revenue increased by 14.22% between 2019 and 2020 and a further 3.14% increase was recorded between 2021 and 2022. There also occurred a decrease of –9.35% between 2022 and 2023 (the current period).
UPS’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 poor, as current ratio decreased from 1.23:1 to 1.10:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
UPS 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 high as it stood at 154% in the current year.
