The review of Net Profit Marginwitnessed a fluctuating trend. The Net Profit Margin moved from4.72% in 2019 to –8.12% in 2023.
The average EBIT Margin for the period under analysis was 3.28%, with 2023 and 2019performing the worst and best, respectively.
In the current year, Westrock was able to cover its interest liabilities –3.22 times – compared to 2019 when it was 3.64 times.
The Asset turnover stood at 0.72 times in 2023 from 0.60in 2019,implying ahigh performance on Assets of the business in relation to revenue.
Profitability
The revenue of Westrock has fluctuated year on year. The revenue decreased by 3.88% between 2019 and 2020 and a further 13.39% increase was recorded between 2021 and 2022. There also occurred adecrease of 4.45% between 2022 and 2023 (the current period).
WestRock’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 increased from 1.42:1 to 1.55:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
WestRock is both equity and debt financed.
The debt-to-equity (D/E) ratio has been fluctuated year on year. The gearing position of the company appears to be high as it stood at 86% in the current year.
