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Financial Analysis of Sonic Healthcare and Ramsey Healthcare

Write an equity research report covering two companies from the health care sector in the Australian market, comparing their performance and prospects, performing a valuation of their common stocks, and providing a buy-side or sell-side recommendation.

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Added on  2023-03-20

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This article provides a detailed financial analysis of Sonic Healthcare and Ramsey Healthcare, including profitability ratios, liquidity ratios, working capital ratio, leverage ratio, and growth ratio.

Financial Analysis of Sonic Healthcare and Ramsey Healthcare

Write an equity research report covering two companies from the health care sector in the Australian market, comparing their performance and prospects, performing a valuation of their common stocks, and providing a buy-side or sell-side recommendation.

   Added on 2023-03-20

ShareRelated Documents
Last Name 1
Name of analysts in your team
Firm name (MAIN firm) & exchange
Ticker: SHL & RHL
Healthcare Industry
10/05/2019
Financial Analysis of Sonic Healthcare and Ramsey Healthcare_1
Last Name 2
Investment Risk
SWOT Analysis
Table 1: SHL SWOT Analysis
Strengths
1. Rigid portfolio brand
2. Effective open cash flows
3. Effective in attaining its market
objectives and strategies
4. Steadfast suppliers
5. A robust dealer society
Weaknesses
1. Requires much advanced technological
investment
2. The company isn’t always successful in
incorporating firms using dissimilar
cultures.
3. Increased attrition levels of working
4. Inefficient accomplishment of financial
planning activities
Opportunities
1. Diversification of new markets due to
government contracts
2. Steady open cash flows give chances to
align resources into contiguous product
sections.
3. Reduced levels of inflation
4. Firm’s major skills can be an achievement
in comparable different field of study
Threats
1. New-fangled innovations created by the
contender or market disruptor maybe a
genuine danger to the business in medium
to long haul future.
2. Expanding patterns towards non-
interference in the American economy
may prompt comparative response
3. Extreme rivalry
4. Increasing pay rates
Table 2: RHL SWOT Analysis
Strengths
1. Putting immense assets in preparing and
improvement of its representatives
2. Mechanization of exercises conveyed
consistency
3. Solid sales network
4. Solid Free Cash Flow
Weaknesses
1. The showcasing of the product left a ton
to be wanted
2. The organization has no option to handle
the difficulties present by the new
participants in the segment
3. Interest in Research and Development is
beneath the quickest developing players
in the business.
4. Constrained accomplishment outside
centre business
Opportunities
1. Unmistakably characterized products
which can prompt the assaults in this
fragment from the contenders.
2. Not awesome at product request
estimating prompting higher rate of
botched chances contrast with its rivals.
3. The organization has not having the option
to handle the difficulties present by the
new participants in the portion and has
lost little piece of the pie in the specialty
Threats
1. Developing qualities of nearby merchants
likewise displays a risk in certain
business sectors as the challenge is
paying higher edges to the neighbourhood
wholesalers.
2. The organization can confront claims in
different markets given
3. Impersonation of the fake and low quality
item is likewise a risk to Ramsay Health
Care Limited's item particularly in the
Financial Analysis of Sonic Healthcare and Ramsey Healthcare_2
Last Name 3
classes. developing markets and low salary
markets.
PESTLE ANALYSIS
Table 3: SHL PESTLE Analysis
Political Factors Economic Factors
Political stability
Risk of military invasion
Level of corruption - especially levels of
regulation in Services sector.
Bureaucracy and interference in
Restaurants industry by government.
Type of economic system
Government intervention in the free
market and related Services
Stability of host country currency.
Social Factors Technological Factors
Demographics and skill level of the
population
Class structure, hierarchy and power
structure in the society.
Education level as well as education
standard in the SHL industry
Culture
Recent technological developments by
Sonic Corp. competitors
Technology's impact on product offering
Impact on cost structure in Restaurants
industry
Legal Factors Environmental Factors
Anti-trust law in healthcare
Discrimination law
Intellectual property law
Consumer protection
Employment law
Weather
Climate change
Laws regulating environment pollution
Air and water pollution regulations in
Restaurants industry
Recycling
Table 4: RHL PESTLE Analysis
Political Factors Economic Factors
Recent years political stability
Corrupt politicians
Inefficient enforced laws and policies
Unreliability of the company’s
intellectual property protection
Trading barriers in the country
Increased levels of taxation
Chances of military invasion by host
country
Questionable operating economic system
Prospected increase in GDP in future
Influence of interest rates in individual
borrowing and investing
Market efficiency
Country’s exchange rates
Increased levels of unemployment
Social Factors Technological Factors
Demographic gender and age
Class alignment in the country
Disparity in educational levels
Company’s health standards
Breakthrough by rivals and its
technological advancement
Diffusion of technology to other firms
Extent of technological improvement
Influence of technology on costs
Financial Analysis of Sonic Healthcare and Ramsey Healthcare_3

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