Zenith Bank PLC

Key Performance Metrics

  • The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 67.91% in 2018 to 61.52% in 2022.
  • The average EBIT Margin for the period under analysis was 139.33% with 2018 and 20219 performing the worst and best, respectively.
  • In the current year, Zenith ICR was 2.92 times – compared to 2018 when it was 2.55 times 
  • The Asset Turnover stood at 0.03 times in 2022 from 0.05 times in 2018, implying a poor performance or Assets of the business in relation to revenue.

Profitability

  • The revenue of Zenith has fluctuated year on year. The revenue decreased by 12.55% between 2018 and 2019 and a further 12.86% increase was recorded between 2019 and 2020. There also occurred an increase of 14.55% between 2021 and 2022 (the current period).
  • Zenith 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 loan to deposit moved from 0.62:1 to 0.50:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.

Capital Structure

  • Zenith 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 84% in the current year.

Source: Zenith Annual Report

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