Impact of Intangible Assets on Profitability: A Healthcare Analysis

This report investigates the relationship between intangible assets and the profitability of healthcare organizations, focusing on six companies: COH, CSL, RMD, RHC, SHL, and FPH. It explores the meaning and concept of intangible assets and profitability, aiming to understand how intangible assets impact financial performance in the healthcare sector. The methodology employs a literature review and a deductive approach, utilizing secondary data collected from articles, books, and academic journals. Non-probability sampling is used to select relevant articles for data analysis. The report discusses strategies for improving profitability within healthcare, acknowledges limitations, and provides recommendations based on the findings. It covers research strategies, approaches, designs, data collection, and analysis methods to provide a comprehensive overview of the research process and outcomes.

Running Head: MANAGEMENT
FINANCE MANAGEMENT

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Table of Contents
Introduction................................................................................................................................3
Title.........................................................................................................................................3
Research background..............................................................................................................3
Problem statement..................................................................................................................3
Justification.............................................................................................................................4
Aim and objectives.................................................................................................................4
Research questions.................................................................................................................5
Critical literature review............................................................................................................5
Methodology..............................................................................................................................7
Methodology..............................................................................................................................7
Findings....................................................................................................................................10
Discussion................................................................................................................................15
Conclusion................................................................................................................................16
Recommendations....................................................................................................................16
Limitations...............................................................................................................................17
References................................................................................................................................18

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Introduction
Title
The research title of this study is the large capital in the health care sector.
Research background
The intangibles asset is reviewed as strategic assets that could mandate to the firm for easily
increasing their productivity in the least time (Tudor, Dima, Dima, & Raţiu, 2014). This
research paper is effective for increasing the understanding about the relationship between
intangible asset and profitability of COH, CSL, RMD, RHC, SHL, and FPH health care
organization. The profitability of the firm could lead to getting higher competitive benefits in
the least time and cost (Sydler, Haefliger, & Pruksa, 2014). These six organizations could be
effective for increasing the profitability of the firm. Moreover, it is evaluated that there are
two variables that might be considered in the research like cash flow statement as it leads to
the firm for increasing robustness of the firm in the least time and costs (Kapelko & Oude
Lansink, 2014). Further, it is examined that it is compulsory for health care organization to
gain their understanding towards intangible assets as well as the profitability of the firm. It
could support the firm for increasing the profitability of the firm in the least time and cost
(Contractor, Yang, & Gaur, 2016).
Problem statement
The primary aim of this study is to evaluate the relationship between the intangible assets and
profitability of the firm. It could lead to the firm for getting a favorable outcome in the least
time and cost (Razafindrambinina & Anggreni, 2017). The primary study of this study is to
evaluate intangible to total assets ratio that has a direct effect on the profitability of large
organizations (Sucuahi, & Cambarihan, 2016). In addition, it is also evaluated that the main
cause of selecting this research is to evaluate the impact of intangible assets on firm
profitability. In addition, it is examined that the intangible assets are the trend of the company

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that offers an opportunity for the firm to continue to increase the profitability of the firm
(Ivanov & Mayorova, 2015). This research is effective for gaining an understanding of the
meaning and concept of intangible asset and profitability. It could also lead to comprehending
the relationship between a relationship between intangible asset and profitability of the health
care sector.
Justification
This research is effective for collecting the understanding of the relationship between
intangible asset and profitability of different health care organization. It also leads to gain the
knowledge of researcher as well as a reader towards the conceptual awareness towards the
role of large capital in the health care sector (Wang, Lu, & Liu, 2014). It could also be
effective for gaining knowledge of different methods of research that could lead to getting
reliable information towards the research issue (Pucci, Simoni, & Zanni, 2015). Furthermore,
it leads to comprehend certain methods like research strategy, research approach, data
collection method, data analysis method, and sampling method. It could be effective for the
attainment of the organizational task. It is also effective for increasing the understanding of
different strategies for improving the profitability of the health care section. It could be
effective for comprehending certain factors and make a favorable decision (Voulgaris &
Lemonakis, 2014)
Aim and objectives
The primary aim of this study is to evaluate the relationship between intangible asset and
profitability of the health care sector. The Following objectives will be completed to
accomplish the aim of this study:
 To explore the meaning and concept of intangible asset and profitability
 To discover the relationship between a relationship between intangible asset and
profitability of the health care sector

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 To understand the strategies for improving the profitability of the health care
section.
Research questions
The research questions of this study are discussed below:
 What is the meaning and concept of intangible asset and profitability?
 What is the relationship between a relationship between intangible asset and
profitability of the health care sector?
 Which strategies are used by the health care organization for improving their
profitability?
Critical literature review
Intangible assets are determined as the factors that could directly impact the overall
profitability of the firm. Moreover, an intangible asset is an asset that has lacks of physical
substance. It is characterized contrary to physical resources, for example, hardware and
structures. An elusive resource is typically difficult to assess. Licenses, copyrights,
establishments, altruism, trademarks, and exchange names (Gamayuni, 2015). Organization
hypothesis unquestionably ties impalpable resources with a progression of costs which an
organization may have: value and obligation, exchange and insolvency or data asymmetry
costs. these costs impact an organization's money related and administrative arrangements.
These approaches are accordingly received to limit the previously mentioned expenses and to
enhance an organization's benefit. Regardless of whether and how the dimension of
intangibles affect an organization's productivity we clarify in Section four (Hajrullina &
Romadanova, 2014). Immaterial resources writing gives opposing outcomes with regards to
the effect of the structure of intangibles on an organization's productivity. a productivity
oddity: an organization's interest in IT programming and administrations negatively affects
the organization's gainfulness, while the interest in IT provided by outer suppliers, for

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example, counseling, usage, bolster administrations, has a positive effect. Her outcomes are
supported up by earlier investigations led by the Council of Economic Advisors (2001) and
McKinsey Global Institute (2001), which archive a negative connection between's IT
spending and profitability. Our exploration affirms there is a higher level of vulnerability
when intangibles are esteemed utilizing a market approach procedure, particularly if
intangibles are examined by segments (Sydler, Haefliger, & Pruksa, 2014). The example they
examined, there is a positive relationship among's intangibles and the upper hand of an
organization and that organizations which flag a larger amount of intangibles to the market
will get a positive reaction from the market. Their outcomes, like our own, feature the
presence of contrasts between the business divisions which they break down. The connection
between intangibles and gainfulness has been generally talked about in the writing. They
describe the high benefit to an abnormal state of intangibles, particularly coming about
because of publicizing and R&D. High gainfulness firms significantly accentuate the
requirement for cautious administration of intangibles and its associating factors:
representatives' efficiency, development exercises, and business connections. Protecting
Intangible Assets gives procedures to safeguarding and improving company elusive
advantages for increment its benefit, aggressiveness, and maintainability. Impalpable
resources, for example, licenses, trademarks, copyrights, philosophies, and brand regularly
represent 80% of an organizations esteem and income. There are numerous powers making it
increasingly more hard to ensure these benefits, and anchoring them is a perplexing issue
regularly neglected by security and hazard administrators. Numerous security administrators
don't have sufficient strategies or methods set up to shield these benefits from the bargain,
encroachment, and robbery (Contractor, Yang, & Gaur, 2016). Defending Intangible Assets
gives administrators the instruments important for ensuring these benefits through viable and
reliable oversight intended to safeguard their control, use, and proprietorship. The book offers

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procedures for different kinds of business exchanges, for example, mergers and acquisitions,
corporate-college R&D unions, new item dispatches, beginning period firms, and college-
based turn-offs. From the application of intangible asset, an organization would be capable to
offer well-ordered rules and best practices for setting up and keeping up an impalpable
resource insurance program (House, Parks, & Lindstrom, 2014, March). It is evaluated that a
firm could give their impalpable resource to improve administration techniques that could be
associated with the esteem, income, and upper hands. It can also be stated that the intangible
asset could offer a way to cooperatively construct an organization culture that envisions and
perceives immaterial resource hazards in ordinary exchanges and activities. Further, it is
illustrated that intangible asset could fortifies the interface with other departments, security
works on, including IT, the board, lawful, bookkeeping, back, and chance administration
(Ivanov & Mayorova, 2015). As a result, organization will be capable to get higher
competitive benefits.
Methodology
Methodology
Under the research methodology, many methods have been considered by the investigator to
select the suitable methods like research strategies, research designs, data collection methods,
data analysis methods, research limitation, and ethical consideration (Pucci, Simoni, & Zanni,
2015). These are discussed as below:
Research strategy
Under the research strategies, many methods have been considered by the researcher like
content analysis method, case study analysis method, literature review method, and survey
through questionnaire method. In this study, the researcher has used the literature review
method to collect the information towards the research matter. Further, it is evaluated that the

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literature review could lead to getting a favorable result in the context of the current issue
(Voulgaris & Lemonakis, 2014)
Research approach
The research approach is effective for selecting reliable outcome about the research issue.
The research approach could consider certain methods like deductive approach and inductive
approach. An inductive approach is an effective tool for getting the conceptual data towards
research issue (Andonova & Ruíz-Pava, 2016). In this, a deductive approach is a significant
tool for the development of a hypothesis on the basis of the research issue. For this research,
an investigator will consider a deductive approach is an imperative tool for obtaining the
conceptual information towards research matter. This study is subjective in nature hence this
tool is more reliable as compared to another tool. As per the use of this method, the
researcher will create reliable information towards the research issue (Hajrullina &
Romadanova, 2014). The research hypothesis has mandated to the researcher to accept and
reject the research hypothesis as per the requirement.
Research design
The research design could also be effective for completing the investigation in the least time
and cost. There are many tools and techniques, which could be effective for pooling
imperative tool as per requirement to make an effective decision (Acaravci, 2014). For this
research, the qualitative research design is implied by the researcher as compared to the
quantitative, mixed research design (Sydler, Haefliger, & Pruksa, 2014).
The information of this study is collected by entailing certain sources named articles, books,
and academic journals, and online websites. It could be more suitable because this study is
subjective in nature. Moreover, the quantitative method leads to getting the factual data about
research issue as it could not be suitable for the research issue. Thus, it is evaluated that if the

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research is not subjective in nature and the study requirements to collect factual information
towards the research issue (Contractor, Yang, & Gaur, 2016).
Data collection methods
The data collection method could facilitate to collect information about the research issue as
it considers certain sources like primary and secondary data collection method (Kamath,
2015). For this study, research has considered only secondary data collection method and gets
conceptual information about the research issue (Ivanov & Mayorova, 2015).
For the collection of the information, the researcher has practiced the secondary data
collection method. This method could consider certain methods like online articles, journal
articles, textbooks, and academic publication. It is also evaluated that it is complex for the
researcher to use reliable tool and technique as per the study for the accomplishment of the
research task. It is also evaluated that the researcher could be accountable for accomplishing
the research aim and objectives in the least time and cost (Pucci, Simoni, & Zanni, 2015).
Sampling
In this study, the non-probability sampling method is used by the research scholar as it
facilitates to meet the aim and objectives of the research matter. In the non-probability
sampling method, a convenience sampling method is practiced by research scholar to
comprehend the study and leads to get a favorable outcome (Voulgaris & Lemonakis, 2014).
In addition, it is evaluated that 3 articles were selected to evaluate the collected data and
reach a reliable conclusion.
Data analysis
In this study, the investigator could use a secondary data analysis tool to collect the
theoretical data to reach a favorable conclusion. This method facilitates to obtain valid and
accurate information towards the research issue (Gamayuni, 2015).
Ethical consideration

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In this study, the researcher has practiced ethical norms wherein the investigator will be liable
to conduct suitable behavior with others. It could be imperative for securing the data and
make a favorable result. Furthermore, the researcher has given an in-text citation in each
paragraph for making the accuracy of the outcome (Voulgaris & Lemonakis, 2014)
Findings
Cochlear Ltd.(COH)
(Sources: Investing.com, 2018).
(Sources: The Wall Street Journal, 2018).
From the above charts, it can be stated that intangible assets has positive impact on the
profitability of Cochlear Ltd. It is addressed that intangible assets is increased 345 million
from 234 million. Furthermore, 5 years of average of profitability in Cochlear Ltd is high in
2018. It shows that there are favourable relationship between intangible assets and
profitability (The Wall Street Journal, 2018).

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CSL (Carlisle Cos.)
(Sources: Investing.com, 2018).
(Sources: The Wall Street Journal, 2018).
The above chart depicts that 5 years average of profitability in Carlisle Cos. Is increasing.
Furthermore, intangible assets is also increased from 979 million to 2440 million in 2018. It
indicates that intangible asset of Carlisle Cos. is increasing over last five years. It also
demonstrates that there is significant relationship between intangible assets and profitability
(The Wall Street Journal, 2018).
ResMed Inc (RMD)

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(Sources: Investing.com, 2018).
(Sources: The Wall Street Journal, 2018).
The above chart depicts that 5 years average of profitability in ResMed Inc is boosting.
Furthermore, intangible assets is also gained from 335 million to 1284 million in 2018. It
indicates that intangible asset of ResMed Inc is increasing in last five years. It also indicates
that there is significant association between intangible assets and profitability (The Wall
Street Journal, 2018).
Ramsay Health Care Ltd. (RHC)