Assignment on Corporate Financial Analysis

Running Head: CORPORATE FINANCIAL ANALYSIS
CORPORATE FINANCIAL ANALYSIS
Name of the Student
Name of the University
Author Note

CORPORATE FINANCIAL ANALYSIS1
Executive Summary
The main purpose of this report is to prepare a corporate financial analysis report of
IHH Healthcare Company for helping the investors in company’s stock. The paper is
supported by analysing the company’s annual report for five years. It is found that, in terms
of financial position the company has generated enough revenue from the past five years.
But, investing in the company’s stock will be quiet riskier for the shareholders. This is
because the profitability position of the company is quiet less in terms of return on equity as
compared to the previous five years.

CORPORATE FINANCIAL ANALYSIS2
Table of Contents
Introduction................................................................................................................................1
Background of the Company.....................................................................................................1
Corporate Financial Analysis.....................................................................................................1
Income Statement...................................................................................................................3
Statement of Financial Position.............................................................................................3
Cash Flow Statement..............................................................................................................6
Horizontal Analysis................................................................................................................7
Vertical Analysis..................................................................................................................11
Financial Ratio Analysis......................................................................................................12
DuPont analysis....................................................................................................................15
Altman z-score.....................................................................................................................16
Market Ratios.......................................................................................................................17
Chairman Report..................................................................................................................18
Managing Directors Report..................................................................................................19
Conclusion................................................................................................................................19
References................................................................................................................................20

CORPORATE FINANCIAL ANALYSIS3
Introduction
This paper will be discussing on the strengths and weakness of the company’s
financial statement. The corporate financial report will be communicating the financial health
position of IHH Healthcare Company. The financial analysis will be done on the basis of
horizontal and vertical analysis of the company’s financial statement. This report will help
the investors to analyse the valuation of the company in terms its financial ratio position and
position of market ratios. The main objective of this report is to prepare a corporate financial
analysis report of IHH Healthcare Berhad for the investors.
Background of the Company
IHH Healthcare Berhad is a healthcare sector of Malaysia that is focused on providing
a top most healthcare services to the people. The group is traded in Kuala Lumpur city of
Malaysia. The group is traded in Bursa Malaysia stock exchange of Malaysia. It is the largest
private healthcare group of Asia. Dato Mohammed Azlan bin Hshim is the current chairman
of the company. The group comprises of some of the top leading brands like Mount
Elizabeth, Pantai, Gleneagles, Acibadem and ParkwayHealth. The company was established
with an acquisition of Pantai Group in the FY 2010.
Corporate Financial Analysis
Financial Statements
The financial Statement of IHH Healthcare Berhad comprises of Income Statement,
Financial Position Statement and cash flow statement. The financial Statement is prepared for
the year ended FY 2018, FY 2017, FY 2016, FY 2015 and FY 2014. The financial statement
is prepared as per the Malaysian financial Reporting Standards (Bakar & Rosbi, 2017). This
standard is according to the International financial reporting standards of the company’s act
2016 in Malaysia. This financial Statement gives a true value of the group’s financial position

CORPORATE FINANCIAL ANALYSIS4
in the respective years. The company directors are responsible for the preparation of the
financial statements and control the internal environment of the group in order to prevent
form any type of fraud and error in the financial statements (IHH Healthcare Berhad . 2020). .
The auditors’ are responsible for preparing the financial statement and make sure the
financial figures are free from any type of material misstatements. The above financial
Statement is prepared according to the requirements mentioned in the company’s act 2016.
Advantages-
 Financial Statement analysis will help the investors to decide on valuing the
company’s stock and decides whether to invest in it or not.
 The regulators can ensure that, the company is following a good practices and help
the government to analyse the tax owned by the company from its business.
Limitations-
 It is difficult to compare the financial position of the company.
 Sufficient data is not present in the notes to account of the annual report, hence, it has
been difficult to compare and can cause confusion.
 The financial ratios calculated was only supported from historical analysis. It cannot
be used for future investigation.

CORPORATE FINANCIAL ANALYSIS5
Income Statement
The company Revenue is generated from Health care services, education services,
management fees, revenue from contracts with their customers, income from rents and
income from dividends (Siew, Fai & Hoe, 2016). The revenue from contracts with customers
is generated by various reportable segments like Singapore, Malaysia, India, Northern Asia,
Europe, Middle East and North Africa. Revenue from health care services were related to
contracts with their patients. The health care services is recorded in the form of credit terms
and there is no obligation of refunds for the health care services that is provided. Revenue
from management fees is generated from various consultancy services.
Statement of Financial Position