The review of Net Profit Marginwitnessed a fluctuating trend. The Net Profit Margin movedfrom28.27% in 2019 to 36.68% in 2023.
The average EBIT Margin for the period under analysis was 43.15%, with 2019 and 2020performing the worst and best, respectively.
In the current year, Vertex was able to cover its interest liabilities 100.32 times – compared to 2019 when it was 24.84 times.
The Asset turnover stood at0.47 times in 2023 from 0.57in 2019,implying alow performance on Assets of the business in relation to revenue.
Profitability
The revenue of Vertex has fluctuatedyear on year. The revenue increased by 49.08% between 2019 and 2020 and a further 17.91% increase was recorded between 2021 and 2022. There also occurred an increase of 10.51% between 2022 and 2023 (the current period).
Vertex’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 was stagnant at3.99:1 to 3.99:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
Vertex 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 4% in the current year.
