Capital Structure

The combination of owned equity (capital) and borrowed money (debt) is known as capital
structure. The primary goal of a financial manager is to maximize shareholder wealth. If an
appropriate capital structure is created for the firm, the same result may be obtained. The process
of developing a capital structure is extremely psychological and complicated. It entails
reconciling the firm's capital requirements with the expectations of its shareholders. (TUOVILA,
2021)
Assumptions:
 Only two types of financing are used by businesses - capital and debt financing.
 There has been no change in the business's investment strategies, implying that total
assets have not changed.
 There are no retained earnings when the dividend payout ratio is 100%.
 There is no taxes of corporations or individuals.
 The firm's future profitability is expected to be profitable, according to investors.
(gardezi, n.d.)

Capital Structure of JMI Syringes & Medical Devices Ltd. (2017 to 2020)

84.36
80.51
69.99 71.98

29.52 27.59
19.12
15.24
(%) 2018 (%) 2019 (%) 2020 (%)
2017

Capital Debt.

(WSJ | MARKETS, 2021)

In 2017: Through the Graph and chart we can see JMI Syringes total capital is 29.52% in 2017.
And total debt is 69.99% in 2017.
In 2018: Through the Graph and chart we can see JMI Syringes total capital is 27.59% in 2018.
And total debt is 71.98% in 2018. Here, the changes of 2017 to 2018 is not affected, because it’s
close enough.
In 2019: Through the Graph and chart we can see JMI Syringes total capital is 84.36% in 2019.
And total debt is 15.24% in 2019. The changes from 2018 to 2019 is like down to the earth.
In 2020: Through the Graph and chart we can see JMI Syringes total capital is 80.51% in 2020.
And total debt is 19.12% in 2020. The changes of 2019 to 2020 is not affected, because it’s close
enough to the previous year.
In 2017 & 2018 the debt was too much higher than the capital. From the 2019 they made a big
change the debt decreased too much then previous which is good and other side the capital is
much higher then previous. It showed investigate the standards in their sector and what their
competitors are doing. Examine a variety of financial products to determine which one best
meets to the needs. If they are thinking about selling shares, make sure they do it in a legal way
that allows to keep control of the firm.
The surgical instrument's demand has risen over time, but Bangladesh has been unable to profit
on it because the country's economy is entirely reliant on imports. In Bangladesh, just three or
four businesses have been producing these medicinal items for years, yet they are insufficient.
The company is a local manufacturer of worldwide standard medical equipment that is WHO,
ISO, USA, and Family Planning – CCSDP approved. To guarantee that individuals have access
to newer, better treatment choices at a reasonable cost, the Company is releasing new goods in
the local market as part of its ongoing process of expanding its product baskets. The firm has
been continually spending as capital expenditure to enhance its capability and for generic and
specialty medical device research and technology to achieve this. (Rezwana, 2019)