Perspectives in Health and Social Care Management: Financial Analysis of Sonic Healthcare Limited

PERSPECTIVE IN HEALTH
AND SOCIAL CARE
MANAGEMENT

Table of Contents
ABSTRACT....................................................................................................................................3
MAIN BODY..................................................................................................................................3
Industry group..............................................................................................................................3
Sonic Healthcare Limited............................................................................................................3
Financial statements.....................................................................................................................4
Key financial ratios......................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1
APPENDIX......................................................................................................................................2
Statement of Income....................................................................................................................2
Statement of financial position....................................................................................................3
Cash flow statement.....................................................................................................................5
Statement of change in equity......................................................................................................7

ABSTRACT
Financial report is of the major aspect that is related with the analysis of the financial
performance of the company. Through the study of this report the company can make an analysis
of its own financial performance along with determining the area of improvement. This report
discusses the financial performance of the company with the help of analysis of the financial
statements and its financial ratio with the selection of adequate industry and concerned company.
MAIN BODY
Industry group
There are various industry group that are registered over the Australian Stock Exchange.
These includes the Basic material, Consumer goods and media, Financial, Real estate,
Healthcare, Technology, Industrial goods and Telecom and utilities (Industries, 2021). While
considering about the basic material industry the concerned companies would include those who
deals with the basic materials and commodities, in the same case the companies that are
associated with the consumer goods and media is related with the consumer goods and media
that’s is associated with the consumer goods, financial industries is related with the financial
institutions and banks, real estate industry is highly concerned towards the property and
infrastructure. Technology industry is concerned with the technology related products, telecom
and utilities industry comprises of all those companies that are related with the media companies
and the communication.
Out of them the selected industry is healthcare which is one of major industry of the
Australia that is associated with those companies that are related with healthcare, medicines,
paramedical and various other aspects. This is one of the major industry that deals with the
medical and healthcare facilities. It includes various diagnostic centres, hospitals and various
other. Various medical originating companies, training institutes are also included in this.
Sonic Healthcare Limited
This is an Australian company that provide, pathology, laboratory services, and radiology
services. This is one of the largest Diagnostic company of Australia. Its headquarter is located in
Sydney, Australia. It was founded on 1934. The number of employees are 37000. After listing on

ASX in 1987 the growth of Sonic Hospital has risen from the small laboratory to the global
market leader along with the acquisition of quality business. After 2000 Sonic made a replication
of Medical leadership at the international level which will make the third largest diagnostic
company in the world with a global reputation of quality machine and care (Our history, 2021).
The business of the of the Sonic is highly concentrated towards the providing of medical,
radiology, pathology and other healthcare services. As per its corporate governance norms the
Sonic follow two aspects that include the performance and conformance. Its make performance
of its operations ethically, responsibly and highest standard of integrity. While making a
consideration towards the social contribution it makes prepare the doctors and the medical
professionals that will lead to play an important role in the generation of the employment. With
the aspect of paying tax on a regular basis it also fulfils its duty towards the contribution of the
government revenue.
Financial statements
The financial statement of the company are the major instrument that depict the financial
health and position of the company. With the help of financial statement and its analysis the
company’s financial growth would be able to get determined (Lessambo, 2018). It includes the
income statements, financial position statement and cash flow statements.
Income statement or profit and loss account is one of the major financial statement which
shows the company’s net profit or loss that is being earned by the company (Pepple and Ejiogu,
2021). While making an analysis of the income statement of the Sonic Healthcare limited it cane
be analysed that the company is making a profit on an inclining trend. This is because in 2020 it
was 541903 which increases in 2021 and become 1347658. This means that the company’s
profitability is high which clearly depict the positive and good financial health of the company.
in the same way the sales and income of the company is also increasing from 6831843 of 2020 to
8754123 in 2021.
Balance sheet is also a major financial statement that shows the company’s financial
position of assets, liabilities and equities (Felber, Campos and Sanchis, 2019). While making an
analysis of the financial position of the Sonic Limited through Balance sheet it can be analysed
that the company’s financial position is inclining with the accounting equation wherein the
company’s total assets will be equal to the sum of liabilities and equities. In the same way the it