Financial Analysis : Mayne Pharma Essay example
909 Words Oct 8th, 2015 4 Pages
4.1 Time Series Analysis
4.1.1 Profitability Analysis
Mayne Pharma reported sale revenue of $141.4M in 2015 underlying EBITDA of $36.4m and reported NPAT of $7.8m. The performance of 2015 seems unsatisfactory as the net profit margin is only 7.83% compared to 2014 where the net profit margin is 21.49% .These results were down due to the underperformance of products sold via third party US distributors in the first half of 2015 but the company realized the problem and has subsequently taken full control of these products by bringing distribution in-house during the second half. However, there is a positive trend of increasing gross profit margin staring from 2011 from 50.85% which reaches 83.05% in 2015. The reported NPAT for the second half was down $0.2m to $3.8m as it was impacted by the one-off costs that have been excluded from the underlying result. The profitability overall performance good and we can expect the net profit margin returns to a higher level.
4.1.2 Activity Analysis
The long term Asset Turnover ratio is experiencing a steady decline from 1.39 to 0.37 till 2015. The LTA turnover ratio consistently remains a low level suggest that the company is not relying on long term asset to generate sales and the capitalizing of R&D expenses contribute to higher level of Long term Assets that results in lower LTA turnover ratio. As for working capital turnover ratio, after the repayment of debt that happened in 2012 that results in high WC…