The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 32.4% in 2019 to 31.7% in 2023.
The average EBIT Margin for the period under analysis was 34.54% with 2020 and 2022 performing the worst and best, respectively.
In the current year, Zenith ICR was 4.9 times – compared to 2019 when it was 4.3 times
The Asset Turnover stood at 0.10 times in 2023 from 0.05 times in 2019, implying a poor performance or Assets of the business in relation to revenue.
Profitability
The revenue of Zenith has increased year on year. The revenue increased by 5.2% between 2019 and 2020 and a further 23.5% increase was recorded between 2021 and 2022. There also occurred an increase of 125% between 2022 and 2023 (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 good, as loan to deposit moved from 0.45:1 to 0.46:1 on the last year. Which implies that the company has 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 49% in the current year.
