A Comparative Analysis of Ramsay Health Care Limited and Quadrant Private Equity

Corporate and Financial Accounting

Finance
Abstract
The assignment is based upon the different sources that a company uses to raise funds. In
this report, two companies are selected for evaluation that is Ramsay Health Care Limited
and Quadrant Private Equity both operates in the field of health. The comparative analysis is
done considering a time frame of three years. With the help of this report, the fund movement
of the companies will be known with ease. Further, the second part of the part is devoted to
the classification of different entities for reporting purpose.
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Finance
Contents
Introduction......................................................................................................................... 3
Items in Equity Section........................................................................................................ 3
Equity Section – Movements............................................................................................... 4
Liabilities section................................................................................................................. 5
Liabilities section – Movements........................................................................................... 6
Comparison of the sources of funds.................................................................................... 8
Part B.................................................................................................................................. 9
References........................................................................................................................ 13
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Finance
Introduction
Ramsay Health Care Limited is a private healthcare service provider found and established in
Australia. With specialization in surgery, psychiatric care and rehabilitation, it has been able to
successfully spread its operation to the UK, USA, France, Malaysia, and Indonesia. It has
more than 100 facility operation centers in Australia making it the largest service provider.
The global operations are over 500 locations committed to delivering high-quality healthcare
services to the patients (Ramsay Health Care, 2018). It is a well-respected name in the
industry and has an excellent track record in patient care, staff engagement and hospital
management.
Quadrant Private Equity floated an aged care operation in 2014 in Australia under the name
Estia Health. Today it is listed on the ASX and valued in millions. It operates through its 69
locations in New South Wales, South Australia, Victoria, and Queensland. The share price fell
significantly in 2018 when a public inquiry was announced by the government in the aged
care center (Estia Health, 2018).
Items in Equity Section
The equity section comprises of issued capital, treasury shares, and convertible adjustable-
rate equity securities (CARES), other reserves and retained earnings. Issued share capital
refers to the ordinary shares that are entitled to one vote per share, either in person or in
proxy at the general meetings of the shareholders (Ramsay Health Care, 2018). They are
entitled to receive dividends as and when declared and also enjoy the rights of participation in
the surplus assets of the company in the event of winding up in proportion to the number and
amounts paid up on the shares. Treasury shares are held by the Employee share plans and
these are deducted from the equity. CARES are the non-cumulative, redeemable, convertible
preference shares issued by Ramsay with a face value of $100 per CARES. The dividend
rate is calculated based on the market rate and the margin. CARES do not have any maturity
date but it can be converted into shares upon the happening of the regulatory event which is
declared by Ramsay. CARES holders do not enjoy voting rights in general meetings.
Estia Health’s Equity section comprises of Issued Capital, Share-based payments reserve
and retained earnings which in this case are accumulated losses (Estia Health, 2018).
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