The review of Net Profit Marginwitnessed a fluctuating trend. The Net Profit Margin moved from52.57% in 2019 to 52.90% in 2023.
The average EBIT Margin for the period under analysis was 66.29%, with 2022 and 2021 performing the worst and best, respectively.
In the current year, VISA was able to cover its interest liabilities 36.23 times– compared to 2019 when it was 28.92 times.
The Asset turnover stood at 0.37 times in 2023 from 0.32 in 2019,implying a high performance on Assets of the business in relation to revenue.
Profitability
The revenue of VISA has fluctuated year on year. The revenue decreased by –4.92% between 2019 and 2020 and a further 21.59% increase was recorded between 2021 and 2022. There also occurred an increase of 11.41% between 2022 and 2023 (the current period).
Visa’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 stayed at 1.45:1 to 1.45:1on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
Visa 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 53% in the current year.
