It's just a brief of the pharmaceutical industry of Bangladesh. It can be different based on different data available online and time fluctuation. The report is not claimed to be 100% accurate.
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Financial performance analysis of JMI syringe & Medical Devices Ltd.
1. Financial Performance Analysis of JMI Syringe & Medical Devices
Financial Management
(FIN-501)
Report on
“Financial Performance Analysis on-
JMI Syringe & Medical Devices.”
Submitted To:
Md. Rizvy Ahmed
Assistant Proctor and Assistant Professor,
Faculty of Business Administration,
Eastern University
Prepared By
Kishuwara Binta Kabir
ID: 191600007
Section: 2
Faculty of Business Administration
Eastern University
Date of Submission: 20th
May, 2019
2. Financial Performance Analysis of JMI Syringe & Medical Devices
Acknowledgement
My work on preparing a term paper on “Financial Performance Analysis of JMI Syringe
& Medical Device.” was a great experience for me in the light of the course Financial
Management (FIN-501), which has a great significance as an emerging and flourishing
renowned organization in the medical supplementary sector in Bangladesh. I strongly
believe that work like this will surely help me to have a clear concept about financial
performance in medical supplementary sector of Bangladesh.
My first thanks go to my honorable teacher Md. Rizvy Ahmed, Assistant Proctor &
Assistant Professor, Faculty of Business Administration, Eastern University who gave me
the opportunity to work on the topic, “Financial Performance Analysis of JMI Syringe &
Medical Device”. He has been gracious enough to give the necessary assistance
throughout the lead time.
To make this paper, I needed lots of information about JMI Syringe & Medical Syringe
and throughout the session, information was available in different websites.
Kishuwara Binta Kabir
ID : 191600007
Section : 2
Masters of business Administration
Faculty of Business Administration
Eastern University.
3. Financial Performance Analysis of JMI Syringe & Medical Devices
LETTER OF TRANSMITTAL
20th
May, 2019
To,
Md. Rizvy Ahmed
Assistant Proctor and Assistant Professor,
Faculty of Business Administration
Eastern University.
Subject: Submission of term paper on “Financial Performance Analysis of JMI Syringe
& Medical Device.”
Sir,
It is my great pleasure to submit my term paper on “Financial Performance Analysis of
JMI Syringe & Medical Device”. I have tried my best to complete this paper properly
following the guidelines.
I am confident that the term paper has increased both of my practical experience and
theoretical knowledge to a great extent. I will be obliged to answer any query that may
arise during the evaluation of this paper. So, I am fervently requesting and hope that you
would be kind enough to accept my term paper and obliged thereby.
Sincerely,
Kishuwara Binta Kabir
ID : 191600007
Section : 2
Faculty of Business Administration
Eastern University.
4. Financial Performance Analysis of JMI Syringe & Medical Devices
EXECUTIVE SUMMARY
The study contains practical information and observation of Finance Division of JMI
Syringe & Medical Device, Dhaka.
The study is on “Financial Performance Analysis of JMI Syringe & Medical Device”
This study gives us elaborate information about liquidity, activities, profit, operation
efficiency, risk & market perceptions of JMI Syringe & Medical Device in terms of
guidelines prescribed for Finance Division of JMI Syringe & Medical Device.
The first part of this paper contains Introduction that deals with origin, objectives,
limitation.
The second part of this paper contains an overview of JMI Syringe & Medical Device.
The third part of this paper contains methodology followed in this study.
The fourth part of this paper contains financial performance analysis of JMI Syringe
& Medical Device and industry average.
The fifth part of this paper includes recommendations
The sixth part of this paper includes conclusion.
5. Financial Performance Analysis of JMI Syringe & Medical Devices
Table of Contents
1 INTRODUCTION...........................................................................................................................1
1.1 Origin of the study:.................................................................................................................8
1.2 Rational of the study: .............................................................................................................8
1.3 Objectives of the study:..........................................................................................................9
1.3.1 Broad Objective:.............................................................................................................9
1.3.2 Specific Objective:..........................................................................................................9
1.4 Limitation of the Study:.........................................................................................................9
2 COMPANY OVERVIEW:...........................................................................................................10
2.1 Mission:..................................................................................................................................11
2.2 Vision .....................................................................................................................................11
2.3 Objective................................................................................................................................11
2.4 Values.....................................................................................................................................11
2.5 Quality Policy........................................................................................................................12
2.6 Products:................................................................................................................................12
2.7 Location:................................................................................................................................12
3 Methodology:.................................................................................................................................13
3.1 Analysis design:.....................................................................................................................14
3.2 Sources of the data: ..............................................................................................................14
3.2.1 Primary Source: ...........................................................................................................14
3.2.2 Secondary Source:........................................................................................................14
3.3 Sample size and selection procedures of the data:.............................................................14
4 Financial Performance Analysis:.................................................................................................15
4.1 Income Statement:................................................................................................................16
4.2 Balance Sheet ........................................................................................................................17
4.3 Ratios:....................................................................................................................................19
4.4 Ratio Analysis:......................................................................................................................20
4.4.1 Liquidity ratio...............................................................................................................20
4.4.2 Activities Ratio: ............................................................................................................22
4.4.3 Profitability Ratio: .......................................................................................................24
4.4.4 Operating Efficiency:...................................................................................................27
4.4.5 Financial Risk:..............................................................................................................28
4.4.6 Market Ratio: ...............................................................................................................29
4.5 Overall Financial Performance:..........................................................................................30
5 Recommendation: .........................................................................................................................31
6 Conclusion:....................................................................................................................................32
6. Financial Performance Analysis of JMI Syringe & Medical Devices
Table of Figures:
Figure 1: Ratio Analysis of JMI & Industry Average.........................................................19
Figure 2: Current Ratio .......................................................................................................20
Figure 3 Quick Ratio...........................................................................................................20
Figure 4: Net Working Capital............................................................................................21
Figure 5: Cash Ratio ...........................................................................................................21
Figure 6: Receivable Turnover ...........................................................................................22
Figure 7: Average Collection Period ..................................................................................22
Figure 8: Inventory Turnover..............................................................................................23
Figure 9: Inventory Processing Period................................................................................23
Figure 10: Gross Profit Margin...........................................................................................24
Figure 11: Operating Profit Margin ....................................................................................24
Figure 12: Net Profit Margin...............................................................................................25
Figure 13: Return on Equity................................................................................................25
Figure 14: Return on Assets................................................................................................26
Figure 15: Return on Invested Capital ................................................................................26
Figure 16: Fixed Asset Turnover ........................................................................................27
Figure 17: Total Asset Turnover.........................................................................................27
Figure 18: Debt Ratio..........................................................................................................28
Figure 19: Debt to Equity....................................................................................................28
Figure 20: Times Interest Earned........................................................................................29
Figure 21: Earnings Per Share ............................................................................................29
Figure 22: Price/Earnings Ratio..........................................................................................30
8. Financial Performance Analysis of JMI Syringe & Medical Devices
1 INTRODUCTION
Bangladesh is one of the developing countries based on the world economy. There
are many functional institutions that control the national economy of the country and a
medical equipment supplier company are one of them.
Day by day the medical sector is improving, as the diseases are expanding and
involving pretty rapidly. It was a myth of a time that, Cancer is a deadly disease. But
now, due to the invention of the cure of diseases like HIV, Cancer etc., the medical sector
of any country is enriching. As a result, the requirements of new equipment are evolving.
To maintain the demand of the requirement of the medical service sector, the supplier
of the equipment has to be updated with the all the evolution of equipment occurs in all
over the world and has to be prepare for the booming demand of new equipment. Not
only global equipment, suppliers has to have sufficient availability of local & regular
usage equipment as well. In such situation, the more updated a supplier is the more
competitive it is in the market.
1.1 Origin of the study:
The medical and healthcare supplier firms never sleep. As the disease are
evolving in every decade, the demand for new equipment always goes on. As discussed
earlier, to sustain in the competitive market, a firm needs to be aware of the latest
inventions in the medical equipment sector both locally & globally. A firm also needs to
be aware of the demand of the day to day products required in the hospitals.
Considering every aspect and obstacles-economic, political disbalance- a
medical equipment supplier firm has to be on their peak to reach to the hospital on time.
Because, a delay in supply of an equipment may cause a loss of life or loss of a sale.
So, a medical equipment supplier firm has to be ready all the time, to face any
sort of changes in demand or environmental & political changes to maintain a good image
in the market.
1.2 Rational of the study:
Any study is incomplete without a practical knowledge gathering opportunity.
The study will help to define the current market condition of a firm involved in medical
equipment supply market. Besides, the study will also give a brief presentation of the
firm’s overall financial performance, what are the sides they are lacking behind over the
years and how they can recover the lacking.
Also, the study will help the investors and government to utilize the sector for
further future investment because, as the market is evolving, and it might be difficult for
a firm involved in such booming industry to maintain the financial performance and a
good market image without any external help.
9. Financial Performance Analysis of JMI Syringe & Medical Devices
1.3 Objectives of the study:
1.3.1 Broad Objective:
To analyze the financial performance of JMI Syringe & Medical Devices
Ltd.
1.3.2 Specific Objective:
To define the liquidity position of JMI over the years.
To define the activities efficiency position of JMI over the years.
To define the profit position of JMI over the years.
To define the operating efficiency position of JMI over the years.
To define the risk position of JMI over the years.
To define the market position of JMI over the years.
To define the over performance position of JMI over the years.
1.4 Limitation of the Study:
Lack of time to analyze the whole market condition for more appropriate
analysis.
As every organization has their own secrecy so, not all the possible
information couldn’t be gathered for proper understanding.
11. Financial Performance Analysis of JMI Syringe & Medical Devices
2 COMPANY OVERVIEW:
JMI Syringes & Medical Devices Ltd. is Bangladesh's major producer of accurate
security syringes and medical equipment serving the health sector here, as well as across
boundaries. In order to save and improve the quality of life, they believe in the best price
as well as the highest export quality standards.
JMI Syringes & Medical Devices Ltd. is a joint undertaking with the Korean
Republic. JMI introduced the K1 Auto Disable (AD) syringe in Bangladesh, which is one
of the pioneers for this technology with the technical collaboration of Star Syringe Ltd.,
UK. The enterprise is certified with GMP certification EN ISO 13485: 2012.
In addition to Auto Disable (AD) Syringe JMI is also a landmark maker of Blood
Transfusion sets in Bangladesh, Intra Venous Cannula, Intrauterine Contraceptive
Device (Copper T 380A). JMI purchases grade raw products of medical from local and
internationally renowned sources. With Singapore, Thailand, Myanmar, Spain and
Portugal, JMI has begun export business already. Exports to different countries in Asia,
Latin America and Europe are significantly progressing.
JMI supports any inquiries concerning their goods and associated problems. they
prioritize the rapid and professional reaction for clients. They take great care to deliver
our clients ' valuable instructions as soon as feasible.
2.1 Mission:
Their mission is to guarantee that they offer their clients maximum standards of
medical equipment, using their creative techniques to promote secure and inexpensive
healthcare for all.
2.2 Vision
The vision of their JMI Syringes is to lead the manufacturers of medical and
operating products in a global context in the field of health and family welfare.
2.3 Objective
JMI aims to gain the confidence and satisfaction of the user in their products by
offering safe, affordable and patient-friendly syringes and medical devices. The
production and promotion of patient-friendly products for global acceptance.
2.4 Values
JMI’s objective is to earn the user's trust and satisfaction in their products
through providing safe, affordable and patient compliant syringes and medical devices.
JMI also wishes to manufacture and promote patient friendly quality products that gain
global acceptance.
12. Financial Performance Analysis of JMI Syringe & Medical Devices
2.5 Quality Policy
Maintain an awareness of fresh technological
innovations to guarantee an improved performance level in the
healthcare industry. The company strictly adheres to Good
Manufacturing Practice (GMP) and other world-renowned
performance norms such as ISO and so on. JMI is dedicated to
development and fresh methods of developing secure and
competitive value goods. In search of quality, they fulfill their
promise.
2.6 Products:
AD Syringes
Disposable Syringes
Insulin Syringes
Disposable Needles
Scalp Vein Set
I.V. Infusion Set
I.V. Cannula
Blood Transfusion Set
First Aid Bandage
Urine Drainage Bag
Feeding Tube
Ryles Tube
Copper T
2.7 Location:
JMI Syringes & Medical Devices Ltd.
JMI Group
7/A Shantibag
Dhaka 1217, Bangladesh
Tel: +880-2 9346630, 8318375, 9333102, 8318733
Fax: +880-2-9337798, 8318303
E-Mail: info@jmigroup-bd.com
14. Financial Performance Analysis of JMI Syringe & Medical Devices
3 Methodology:
The study is made in quantitative manner.
3.1 Analysis design:
Ratio Analysis
3.2 Sources of the data:
3.2.1 Primary Source:
As there wasn’t any survey conducted in the following period so there is
no primary sources of data.
3.2.2 Secondary Source:
Annual reports of JMI.
Financial performance of JMI in equity market or on DSE website.
Different published articles on JMI.
Web Browsing.
Different text books.
3.3 Sample size and selection procedures of the data:
To make the study valid and reliable, the financial statement of JMI Syringe &
Medical Device from 2018 to 2014 has been collected from their own website based on
availability of data as a sample.
18. Financial Performance Analysis of JMI Syringe & Medical Devices
Short Term
Loan - 234,101,269 217,411,708 375,173,265 606,601,074
Lease Finance
42,657,195 114,019,770 - - -
Bank Loan for
Working
Capital
386,381,713 - - - -
Directors &
Sister Concern
Loan
86,930,844 40,645,960 - - -
Workers Profit
Participation
Fund
4,236,579 - - - -
Dividend
Payable 2,265,579 2,977,075 3,820,343 3,092,256 2,832,252
Accounts
Payable 9,844,352 - - - -
Accrued
Expenses
Payable
- 122,860,177 186,642,001 3,254,707 18,441,181
Creditors and
Other Payable 10,274,395 61,302,710 27,246,083 120,662,831 114,803,223
Total
Liabilities 1,211,302,555 1,334,207,050 1,310,822,884 1,735,460,127 1,997,842,794
Total Equity
& Liabilities 1,742,415,534 1,898,033,548 2,021,784,127 2,479,462,437 2,781,834,747
Share
Outstanding 10,202,514 9,297,930 11,000,483 10,999,443 11,000,350
Book Value
48.86 60.64 64.63 67.64 71.27
19. Financial Performance Analysis of JMI Syringe & Medical Devices
4.3 Ratios:
Ratio Analysis 2014 2015 2016 2017 2018 (Industry Avg)
Liquidity Ratio
Current Ratio 1.09 1.21 1.26 2.52 1.96 1.9
Quick Ratio 0.55 0.57 0.88 1.64 1.35 1.5
Net Working Capital 561.49 1477.68 1882.02 7824.80 7748.15 7849.65
Cash ratio 0.26 0.28 0.55 1.07 0.93 1.15
Activities Ratio
Receivables Turnover 3.44 3.27 5.72 4.63 4.24 5.6
Avg Collection Period 106 111 64 79 86 76
Inventory Turnover 1.27 1.05 3.40 2.13 2.05 2.69
Inventory Processing
Period
287 348 1.07 172 178 164
Profitability Ratio
Gross Profit Margin 30% 31% 30% 29% 29% 32%
Operating Profit
Margin
20% 21% 21% 19% 18% 28%
Net Profit Margin 4% 4% 5% 5% 5% 8.9%
Return on Equity 23% 25% 64% 68% 69% 78%
Return on Assets 1% 1% 3% 3% 3% 4.5%
Return on Invested
Capital
17% 21% 39% 18% 19% 41.8%
Operating Efficiency Ratio
Fixed Asset Turnover 0.57 0.67 1.24 1.15 1.18 1.57
Total Asset Turnover 0.35 0.36 0.67 0.55 0.51 1.29
Financial Risk Ratio
Debt Ratio 71% 70% 65% 70% 72% 62%
Debt to Equity 4.91 4.61 4.94 10.65 10.26 7.95
Times Interest Earned 1.40 1.39 1.54 1.67 1.68 1.75
Market Ratio
Price/Earnings Ratio 4.46 4.81 6.43 6.78 6.86 7.64
Earnings Per Share 48.86 60.64 64.63 67.64 71.27 65.78
Figure 1 Ratio Analysis of JMI & Industry Average
20. Financial Performance Analysis of JMI Syringe & Medical Devices
4.4 Ratio Analysis:
4.4.1 Liquidity ratio
4.4.1.1 Cash Ratio:
Cash ratio is the ratio of cash and cash equivalents of a firm to its current
liabilities. It is an extreme liquidity ratio since only cash and cash equivalents are
compared with the current liabilities. It measures the ability of a firm to repay its current
liabilities by only using its cash and cash equivalents and nothing else.
Figure 2: Current Ratio
A current ratio of JMI has increased over the period of time but it was higher in 2017
and its close to industry average (Figure 1).
4.4.1.2 Quick Ratio:
Quick Ratio focuses on only the most liquid of the firm’s current assets-
cash, marketable securities and accounts receivables.
Figure 3 Quick Ratio
A quick ratio of JMI has increased over the period of time but it was higher in 2017 and
its close to industry average (Figure 1).
1.09 1.21
1.26
2.52
1.96
-
0.50
1.00
1.50
2.00
2.50
3.00
2014 2015 2016 2017 2018
Current Ratio
0.55 0.57
0.88
1.64
1.35
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2014 2015 2016 2017 2018
Quick Ratio
21. Financial Performance Analysis of JMI Syringe & Medical Devices
4.4.1.3 Net Working Capital:
Net working capital is the aggregate amount of all current assets and
current liabilities. It is used to measure the short-term liquidity of a business, and
can also be used to obtain a general impression of the ability of company
management to utilize assets in an efficient manner.
Figure 4: Net Working Capital
A net working capital of JMI has increased over the period of time but it was higher in
2017 and its little bit lower than industry average (Figure 1).
4.4.1.4 Cash Ratio:
The cash ratio is the ratio of a company's total cash and cash equivalents to
its current liabilities. The metric calculates a company's ability to repay its short-term debt
with readily-liquidated cash resources.
Figure 5: Cash Ratio
A cash ratio of JMI has increased over the period of time but it was higher in 2017 and
its lower than the industry average (Figure 1).
-
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
8,000.00
9,000.00
2014 2015 2016 2017 2018
Net Working Capital
0.26 0.28
0.55
1.07
0.93
-
0.20
0.40
0.60
0.80
1.00
1.20
2014 2015 2016 2017 2018
Cash Ratio
22. Financial Performance Analysis of JMI Syringe & Medical Devices
JMI Liquid Position:
Firm’s overall liquidity position is moderate comparing with the industry average.
4.4.2 Activities Ratio:
4.4.2.1 Receivables Turnover:
Accounts receivable turnover is the number of times per year that a
business collects its average accounts receivable. The ratio is used to evaluate the ability
of a company to efficiently issue credit to its customers and collect funds from them in
a timely manner.
Figure 6 Receivable Turnover
Accounts receivable turnover of JMI has increased over the period of time but it was
higher in 2016 and its lower than industry average (Figure 1).
4.4.2.2 Average Collection Period:
The average collection period is the amount of time it takes for a business to
receive payments owed in terms of accounts receivable. The average collection period is
calculated by dividing the average balance of accounts receivable by total net credit sales
for the period and multiplying the quotient by the number of days in the period.
Figure 7 Average Collection Period
3.44
3.27
5.72
4.63
4.24
-
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2014 2015 2016 2017 2018
Receivable Turnover
106
111
64
79
86
-
20
40
60
80
100
120
2014 2015 2016 2017 2018
Average Collection Period
23. Financial Performance Analysis of JMI Syringe & Medical Devices
Accounts collection period of JMI has decreased over the period of time but it was
higher in 2015 and lower in 2016 and its higher to industry average (Figure 1).
4.4.2.3 Inventory Turnover:
Inventory turnover is a ratio showing how many times a company has sold
and replaced inventory during a given period. A company can then divide the days in the
period by the inventory turnover formula to calculate the days it takes to sell
the inventory on hand.
Figure 8 Inventory Turnover
Inventory turnover of JMI has increased over the period of time but it was higher in
2016 and lower in 2015 and its lower than industry average (Figure 1).
4.4.2.4 Inventory Processing Period:
Inventory processing Period is the ratio that measures the effective
management of inventory in terms of number of days inventory is held.
Figure 9 inventory Processing Period
Inventory processing period of JMI has decreased over the period of time but it was
higher in 2015 and lower in 2016 and its higher than industry average (Figure 1).
1.27
1.05
3.40
2.13 2.05
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
2014 2015 2016 2017 2018
Inventory Turnver
287
348
107
172 178
-
50
100
150
200
250
300
350
400
2014 2015 2016 2017 2018
Inventory Processing Period
24. Financial Performance Analysis of JMI Syringe & Medical Devices
JMI Activity Efficiency Position:
Firm’s overall activities efficiency position is lower comparing with the industry
average.
4.4.3 Profitability Ratio:
4.4.3.1 Gross Profit:
Gross profit margin is a metric used to assess a company's financial health
and business model by revealing the amount of money left over from sales after deducting
the cost of goods sold. The gross profit margin is often expressed as a percentage of sales
and may be called the gross margin ratio.
Figure 10 Gross Profit Margin
Gross Profit Margin of JMI has increased over the period of time but it had increased in
2015 and its lower than industry average (Figure 1).
4.4.3.2 Operating Profit Margin
The operating margin measures how much profit a company makes on a
dollar of sales, after paying for variable costs of production, such as wages and raw
materials, but before paying interest or tax.
Figure 11 Operating Profit Margin
30%
31%
30%
29% 29%
28%
29%
29%
30%
30%
31%
31%
2014 2015 2016 2017 2018
Gross Profit Margin
20%
21%
21%
19%
18%
17%
18%
18%
19%
19%
20%
20%
21%
21%
22%
2014 2015 2016 2017 2018
Operating Profit Margin
25. Financial Performance Analysis of JMI Syringe & Medical Devices
Operating Profit Margin of JMI has decreased over the period of time and its lower than
industry average (Figure 1).
4.4.3.3 Net Profit Margin:
The net profit margin is equal to how much net income or profit is
generated as a percentage of revenue.
Figure 12: Net Profit Margin
Net Profit Margin of JMI has increased slightly over the period of time and its lower
than industry average (Figure 1).
4.4.3.4 Return on Equity:
ROE is considered a measure of how effectively management is using a
company’s assets to create profits.
Figure 13: Return on Equity
Return on Equity of JMI has increased highly over the period of time and its lower than
industry average (Figure 1).
4% 4%
5%
5% 5%
0%
1%
2%
3%
4%
5%
6%
2014 2015 2016 2017 2018
Net Profit Margin
23% 25%
64%
68% 69%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2014 2015 2016 2017 2018
Return On Equity
26. Financial Performance Analysis of JMI Syringe & Medical Devices
4.4.3.5 Return on Asset:
Return on assets (ROA) is an indicator of how profitable a company is
relative to its total assets.
Figure 14: Return on Assets
Return on Asset of JMI has increased over the period of time but it was higher in 2016
and its lower than industry average (Figure 1).
4.4.3.6 Return on Invested Capital
The return on invested capital (ROIC) is the percentage amount that a
company is making for every percentage point over the Cost of Capital.
Figure 15: Return on Invested Capital
Return on Invested Capital of JMI has increased over the period of time but it was higher
in 2016 and its lower than industry average (Figure 1).
JMI Profitability Position:
Firm’s overall activities profitability position is lower comparing with the industry
average.
1.45% 1.42%
3.50%
3.01%
2.71%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
2014 2015 2016 2017 2018
Return On Asset
17%
21%
39%
18%
19%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2014 2015 2016 2017 2018
Return on Invested Capital
27. Financial Performance Analysis of JMI Syringe & Medical Devices
4.4.4 Operating Efficiency:
4.4.4.1 Fixed Asset Turnover:
Fixed-asset turnover is the ratio of sales (on the profit and loss account) to
the value of fixed assets (on the balance sheet).
Figure 16: Fixed Asset Turnover
Fixed Asset Turnover of JMI has increased over the period of time but it was little higher
in 2016 and its lower than industry average (Figure 1).
4.4.4.2 Total Asset Turnover:
The asset turnover ratio measures the value of a company's sales
or revenues relative to the value of its assets.
Figure 17: Total Asset Turnover
Fixed Asset Turnover of JMI has increased over the period of time but it was little higher
in 2016 and its lower than industry average (Figure 1).
JMI Operating Efficiency Position:
Firm’s overall activities operating efficiency is lower comparing with the industry
average.
0.57
0.67
1.24
1.15
1.18
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
2014 2015 2016 2017 2018
Fixed Asset Turnover
0.35
0.36
0.67
0.55 0.51
-
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
2014 2015 2016 2017 2018
Total Asset Turnover
28. Financial Performance Analysis of JMI Syringe & Medical Devices
4.4.5 Financial Risk:
4.4.5.1 Debt ratio:
The debt ratio is a financial ratio that measures the extent of a company’s
leverage.
Figure 18: Debt Ratio
Debt Ratio of JMI has increased slightly over the period of time but it was dramatically
lower in 2016 and its higher than industry average (Figure 1).
4.4.5.2 Debt to Equity Ratio:
The ratio is used to evaluate a company's financial leverage.
Figure 19: Debt to Equity
Debt to Equity Ratio of JMI has increased slightly from 2014 to 2016 then dramatically
increased in 2017 and slightly decreased in 2018 and its higher than industry average
(Figure 1).
0.71 0.70
0.65
0.70
0.72
0.60
0.62
0.64
0.66
0.68
0.70
0.72
0.74
2014 2015 2016 2017 2018
Debt Ratio
4.91 4.61 4.94
10.65
10.26
-
2.00
4.00
6.00
8.00
10.00
12.00
2014 2015 2016 2017 2018
Debt to Equity
29. Financial Performance Analysis of JMI Syringe & Medical Devices
4.4.5.3 Times Interest Earned:
Times interest earned (TIE) is a metric used to measure a company's ability
to meet its debt obligations.
Figure 20: Times Interest Earned
Times Interest Earned of JMI has increased slightly over the period of time and its lower
than industry average (Figure 1).
JMI Financial Risk Position:
Firm’s overall financial risk is higher comparing with the industry average.
4.4.6 Market Ratio:
4.4.6.1 Earnings Per Share:
Earnings per share (EPS) is the portion of a company's profit allocated to
each share of common stock. Earnings per share serve as an indicator of a company's
profitability. It is common for a company to report EPS that is adjusted
for extraordinary items and potential share dilution.
Figure 21: Earnings Per Share
Earnings per share of JMI has increased slightly in each year over the period of time and
its lower than industry average (Figure 1).
1.40 1.39
1.54
1.67 1.68
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2014 2015 2016 2017 2018
Times Interest Earned
48.86
60.64
64.63
67.64 71.27
-
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
2014 2015 2016 2017 2018
Earnings Per Share
30. Financial Performance Analysis of JMI Syringe & Medical Devices
4.4.6.2 Price/Earnings Ratio:
P/E is the ratio of the market price of a company’s stock to its earnings per share (EPS).
Figure 22: Price/Earnings Ratio
Price/Earnings Ratio of JMI has increased slightly in each year over the period of time
and its higher than industry average (Figure 1).
JMI Market Position:
Firm’s overall market position is moderate comparing with the industry average.
4.5 Overall Financial Performance:
Firms overall financial performance is poor than industry average. As discussed
earlier, as the pharmaceuticals industry is booming so a firm needs to be prepared for
every ups and downs. JMI Syringe & Medical Devices ’s individual performance is
moderate but when we consider the industry average and do the comparison, its liquidity,
activities efficiency, profitability positions are lower than industry average. It has high
risk and moderate market perception. So, it can be concluded that firm’s overall financial
performance is poor than the booming industry.
4.46 4.81
6.43 6.78 6.86
-
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
2014 2015 2016 2017 2018
Price/Earnings Ratio
32. Financial Performance Analysis of JMI Syringe & Medical Devices
5 Recommendation:
Firm needs to be more conscious about its liquidity.
Firm needs to be more conscious about its activities efficiency.
Firm needs to be more conscious about its profitability.
Firm needs to be more conscious about its operating efficiency.
Firm needs to be more conscious about its risk.
Firm needs to be more conscious about its market perception.
6 Conclusion:
Pharmaceutical Industry is booming in every decade. To adapt with this, firm needs
to be always on the peak of point. A firm who fails to adapt with the changes fast, it went
through a great loss. In such case, investing on a long-time project can be risky. JMI
Syringe & Medical Device has invested on a long-time project on 2017, though its current
financial performance is lower than industry average. Hope the longer investment, will
give the firm a positive feedback and firm will get back on track.
