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RAMSAY HEALTH CARE LIMITED RHC (doc)

   

Added on  2021-01-03

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RAMSAY HEALTHCARE LIMITED RHC

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Forecasting.......................................................................................................................................1Sales Growth..........................................................................................................................1Inflation rate in Australia:......................................................................................................4Asset Turnover Ratio ATO....................................................................................................6PM..........................................................................................................................................7Free cash flow.........................................................................................................................7Net dividend payout ratio.......................................................................................................8Cost of debt & Cost of equity.................................................................................................9................................................................................................................................................9VALUATION................................................................................................................................10Dividend discount model (DDM) .......................................................................................10Residual income model ......................................................................................................10Residual operating income model........................................................................................11Free cash flow model............................................................................................................11SENSITIVITY ANALYSIS..........................................................................................................11MANAGEMENT CONSULTING ADVICE................................................................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12

INTRODUCTIONThe forecast plays a main role in managerial planning and better operational control bythe business professionals. It determines the future growth of firm in respective period whichwill be helpful to the professionals in administrating the costs, resources utilised in each businessplanning. There will be consideration of various past records which in turn will have positiveimpacts over the growth of firm's revenue. It also enables the workforce to make productiveefforts as well as make them able to meet the targeted goals in required time. Further, the reportwill be consists of various models which benefits the firm in making effective valuation.Therefore, it comprises with financial analysis and primary aims for business in understandingthe internal environment of organisations to ascertain the appropriate strategies and growth ofbusiness sales in past five years.ForecastingSales GrowthIn relation with analysing the sales growth of the entity in the respective period it can besaid that there are various operations which are needed to be made by the business professionalsas to have risen in the income of firm. Ramsay Healthcare Limited will be assistive as they willhave appropriate growth and revenue from the market in relation with making effective analysisover the business (Azad, Raza and Zaidi, 2018). The sales forecast will be relevant with thepredicted quantity and prices of the firm. Moreover, it can be said that there will be noconsideration of historical details and operational influences of the firm. There will be influencesof various economic factors such as inflation, GDP, population growth etc. therefore, in relationwith the growth of Ramsay Health Care Limited it can be said that there will be consideration ofvarious operational tasks and investing activities. However, the influences of various changeswill be effective in rising the sales growth of this entity. The consumers' satisfaction creates amemorable experience in them. In accordance with the treatment they have received throughfirm's operational practices. Moreover, there has been decline in the productivity and sales levelof business in terms with dealing with the patients.1

201320142015201620172018201920202021202200.20.40.60.811.21.41.601.181.491.181.001.061.061.061.061.06S ales revenue201320142015201620172018201920202021202202000000400000060000008000000100000001200000014000000Sales revenueInterpretation: In relation with analysing the operational practices of the entity as tohave satisfactory rise in the revenue and gains of the business it can be said that there has beenrise in the level of sales volume over the period. It has been estimated by the professionals thatRHC will be profitable in the coming time as they will have risen in the sale volume of the firm.Moreover, it can be said that there will be no consideration of historical details and operationalinfluences of the firm. There will be influences of various economic factors such as inflation,2

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