Comprehensive Financial Analysis: Ramsay Healthcare Ltd Performance
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This report provides a detailed financial analysis of Ramsay Healthcare Ltd over a five-year period, comparing its performance against Sonic Healthcare Ltd. Key financial ratios related to profitability, solvency, and liquidity are computed and analyzed to assess Ramsay Healthcare's growth and financi...
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Running head: FUNDAMENTAL OF VALUE CREATION
Fundamental of Value Creation
Name of the Student:
Name of the University
Author’s Note
Fundamental of Value Creation
Name of the Student:
Name of the University
Author’s Note
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1
FUNDAMENTAL OF VALUE CREATION
Executive Summary
The main purpose of this assessment is to analyze the performance of Ramsay Healthcare ltd for
the period of five years in order to estimate whether the business is performing and growing as
per the expectation of the management or not. The assessment contains analysis of the financial
statements in order t analyze the significant items which are included in the annual reports of the
business during the year. The assessment further contains ratio computation of profitability,
solvency and liquidity aspects of the business and provide analysis for the same considering the
growth of the business. The assessment includes analysis of another company’s financial
statements in order to ensure that the performance of Ramsay Healthcare ltd can be measured
against a standard. The company which is selected is one of the close competitors of the business
which is Sonic Healthcare ltd. The assessment includes ratio calculations of Sonic Healthcare ltd
along with comparative analysis for the same.
FUNDAMENTAL OF VALUE CREATION
Executive Summary
The main purpose of this assessment is to analyze the performance of Ramsay Healthcare ltd for
the period of five years in order to estimate whether the business is performing and growing as
per the expectation of the management or not. The assessment contains analysis of the financial
statements in order t analyze the significant items which are included in the annual reports of the
business during the year. The assessment further contains ratio computation of profitability,
solvency and liquidity aspects of the business and provide analysis for the same considering the
growth of the business. The assessment includes analysis of another company’s financial
statements in order to ensure that the performance of Ramsay Healthcare ltd can be measured
against a standard. The company which is selected is one of the close competitors of the business
which is Sonic Healthcare ltd. The assessment includes ratio calculations of Sonic Healthcare ltd
along with comparative analysis for the same.
2
FUNDAMENTAL OF VALUE CREATION
Table of Contents
Introduction......................................................................................................................................3
Profitability Ratio Analysis.............................................................................................................4
Liquidity Ratio Analysis..................................................................................................................9
Solvency Ratio Analysis................................................................................................................14
Industry Analysis...........................................................................................................................18
Conclusion.....................................................................................................................................21
Bibliography..................................................................................................................................23
Appendix........................................................................................................................................25
FUNDAMENTAL OF VALUE CREATION
Table of Contents
Introduction......................................................................................................................................3
Profitability Ratio Analysis.............................................................................................................4
Liquidity Ratio Analysis..................................................................................................................9
Solvency Ratio Analysis................................................................................................................14
Industry Analysis...........................................................................................................................18
Conclusion.....................................................................................................................................21
Bibliography..................................................................................................................................23
Appendix........................................................................................................................................25
3
FUNDAMENTAL OF VALUE CREATION
Introduction
Ramsay Healthcare ltd is one of the leading operators in hospitals and provides health
care services to the clients and hospitals as well. As per approximate figures, the company
operates in around 235 hospitals and day surgery facilities across Australia, France, UK,
Malaysia and Italy. The company operates in 73 hospitals in Australia itself making the country
from which the business generates maximum revenues. In UK, the business has a fair share of
trades with operations in 35 hospitals and also acts as an independent service provider and the
services of the business are also referred by National Health Services (NHS). It is shown in the
annual report that the business employees around 60,000 employees and has around 200
pharmacies. The annual report of the company further shows that the business draws about 50%
of its revenue from the operation in Australia and again around 20% from the market of UK.
The main purpose of this assessment is to analyze the financial performance of the
business of Ramsay Health Care ltd which is engaged in providing healthcare services to the
people and mainly operates in UK and Australia. The assessment will be making a comparative
analysis of the financial statements of the business for a period of five years and then on the basis
of the financial information significant ratios are to be computed. The assessment will also be
considering another company for the purpose of conducting a comparative analysis of the
financial performance of both the companies. The company which is selected for the
comparative analysis is Sonic Health care ltd which is regarded to be one of the close
competitors of the Ramsay Healthcare Ltd. The assessment will be analyzing the financial
statements which is prepared by both the business for the current year in comparison to previous
year as well and with each other to establish which business has a better performance. In addition
to this, key financial ratios of the business will be computed which are related to solvency,
profitability and liquidity aspects of the business (Brochet, Jagolinzer & Riedl, 2013). The main
motive of the assessment is to analyze the development of business in terms of financial
estimates which are to be analyzed considering a five years period. Another objective of the
assessment is to set a competitive analysis in roder to under the financial position of both the
business.
Ramsay Healthcare Ltd is engaged in the business of providing health care services to the
customers and the business operates as a private business firm. The business has its headquarters
FUNDAMENTAL OF VALUE CREATION
Introduction
Ramsay Healthcare ltd is one of the leading operators in hospitals and provides health
care services to the clients and hospitals as well. As per approximate figures, the company
operates in around 235 hospitals and day surgery facilities across Australia, France, UK,
Malaysia and Italy. The company operates in 73 hospitals in Australia itself making the country
from which the business generates maximum revenues. In UK, the business has a fair share of
trades with operations in 35 hospitals and also acts as an independent service provider and the
services of the business are also referred by National Health Services (NHS). It is shown in the
annual report that the business employees around 60,000 employees and has around 200
pharmacies. The annual report of the company further shows that the business draws about 50%
of its revenue from the operation in Australia and again around 20% from the market of UK.
The main purpose of this assessment is to analyze the financial performance of the
business of Ramsay Health Care ltd which is engaged in providing healthcare services to the
people and mainly operates in UK and Australia. The assessment will be making a comparative
analysis of the financial statements of the business for a period of five years and then on the basis
of the financial information significant ratios are to be computed. The assessment will also be
considering another company for the purpose of conducting a comparative analysis of the
financial performance of both the companies. The company which is selected for the
comparative analysis is Sonic Health care ltd which is regarded to be one of the close
competitors of the Ramsay Healthcare Ltd. The assessment will be analyzing the financial
statements which is prepared by both the business for the current year in comparison to previous
year as well and with each other to establish which business has a better performance. In addition
to this, key financial ratios of the business will be computed which are related to solvency,
profitability and liquidity aspects of the business (Brochet, Jagolinzer & Riedl, 2013). The main
motive of the assessment is to analyze the development of business in terms of financial
estimates which are to be analyzed considering a five years period. Another objective of the
assessment is to set a competitive analysis in roder to under the financial position of both the
business.
Ramsay Healthcare Ltd is engaged in the business of providing health care services to the
customers and the business operates as a private business firm. The business has its headquarters
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4
FUNDAMENTAL OF VALUE CREATION
in Australia but also has its operations in UK and France. The company specializes in providing
services such as surgery, rehabilitation and psychiatric care for the clients of the business. The
business is a growing business in terms of revenue and profits generation as shown in the
financial statements of the business. On the other hand, the business of Sonic Healthcare ltd is
engaged in providing laboratory services, pathology and radiology services to the customers of
the business. The business of Sonic Healthcare ltd operates in the same industry as Ramsay
Healthcare ltd. The company is regarded to be one of the largest diagnostic companies in the
country. The company also has its operations in several other countries like UK, USA, Germany
and several other countries.
Profitability Ratio Analysis
The profitability ratios of a business are computed in order to analyze the profitability of
a business. The profitability ratios of the business consider the total revenue which is generated
by the business during a particular year and are considered to be key for making comparative
study and analysis of the financial performance of the business during the period. On the basis of
the financial information which is available for Ramsay Healthcare ltd, some key profitability
ratios are computed and shown below in the table.
Growth Rate
Particulars 2013 2014 2015 2016 2017 2018 2014 2015 2016
201
7 2018
Net Profit Margin
6.66
%
6.77
%
5.08
%
5.17
%
5.59
%
4.48
%
1.65
%
-
24.96
%
1.77
%
8.12
%
-
19.86
%
Return on Equity
17.8
4%
19.5
1%
19.9
9%
22.1
0%
21.2
8%
17.3
6%
9.36
%
2.46
%
10.5
6%
-
3.71
%
-
18.42
%
Return on Assets
7.98
%
8.56
%
6.02
%
6.60
% 7%
5.38
%
7.27
%
-
29.67
%
9.63
%
6.06
%
-
23.14
%
Return on
Invested Capital
21.4
5%
25.1
4%
19.6
5%
21.4
0%
21.4
3%
16.9
7%
17.2
0%
-
21.84
%
8.91
%
0.14
%
-
20.81
%
FUNDAMENTAL OF VALUE CREATION
in Australia but also has its operations in UK and France. The company specializes in providing
services such as surgery, rehabilitation and psychiatric care for the clients of the business. The
business is a growing business in terms of revenue and profits generation as shown in the
financial statements of the business. On the other hand, the business of Sonic Healthcare ltd is
engaged in providing laboratory services, pathology and radiology services to the customers of
the business. The business of Sonic Healthcare ltd operates in the same industry as Ramsay
Healthcare ltd. The company is regarded to be one of the largest diagnostic companies in the
country. The company also has its operations in several other countries like UK, USA, Germany
and several other countries.
Profitability Ratio Analysis
The profitability ratios of a business are computed in order to analyze the profitability of
a business. The profitability ratios of the business consider the total revenue which is generated
by the business during a particular year and are considered to be key for making comparative
study and analysis of the financial performance of the business during the period. On the basis of
the financial information which is available for Ramsay Healthcare ltd, some key profitability
ratios are computed and shown below in the table.
Growth Rate
Particulars 2013 2014 2015 2016 2017 2018 2014 2015 2016
201
7 2018
Net Profit Margin
6.66
%
6.77
%
5.08
%
5.17
%
5.59
%
4.48
%
1.65
%
-
24.96
%
1.77
%
8.12
%
-
19.86
%
Return on Equity
17.8
4%
19.5
1%
19.9
9%
22.1
0%
21.2
8%
17.3
6%
9.36
%
2.46
%
10.5
6%
-
3.71
%
-
18.42
%
Return on Assets
7.98
%
8.56
%
6.02
%
6.60
% 7%
5.38
%
7.27
%
-
29.67
%
9.63
%
6.06
%
-
23.14
%
Return on
Invested Capital
21.4
5%
25.1
4%
19.6
5%
21.4
0%
21.4
3%
16.9
7%
17.2
0%
-
21.84
%
8.91
%
0.14
%
-
20.81
%
5
FUNDAMENTAL OF VALUE CREATION
4.48%
17.36%
5.38%
16.97%
Profitability Ratios
Net Profit Margin Return on Equity
Return on Assets Return on Invested Capital
Figure 1: (Pie Chart portraying Profitability ratios for 2018)
Source: (Created by the Author)
The above table shows the computation of net profit margin of a business, return on
assets and equity and return on invested capital of the business which are considered to be key
financial ratios of the business. The pie Chart which is shown in figure 4 reflects profitability
ratios of the business for the year 2018. The net profit margin as shown in the table above has
declined over the years which is due to the high costs of operations of the business. The net
profit margin for the business for the year 2018 is shown to be 4.48% which was shown to be
6.67 in 2014. From 2014, the sales of the business has increased rapidly and so has the costs of
operations and therefore there is a fall in the net profit margin of the business (Carraher & Van
Auken, 2013). The return on assets and return on equity of a business are considered to be
important financial indicator for the success of the business. The return on equity has declined
heavily as compared to 2017 analysis which suggest that the business is not earning enough
returns on its equity and the growth is shown to be negative (Delen, Kuzey & Uyar, 2013). The
return on assets of the business also demonstrate a similar trend and the growth is in negative
which is shown to be -23.14%. The return on invested capital of the business is shown to be on a
fall as well which is due to the fact of fall in the profits of the business. The return on invested
FUNDAMENTAL OF VALUE CREATION
4.48%
17.36%
5.38%
16.97%
Profitability Ratios
Net Profit Margin Return on Equity
Return on Assets Return on Invested Capital
Figure 1: (Pie Chart portraying Profitability ratios for 2018)
Source: (Created by the Author)
The above table shows the computation of net profit margin of a business, return on
assets and equity and return on invested capital of the business which are considered to be key
financial ratios of the business. The pie Chart which is shown in figure 4 reflects profitability
ratios of the business for the year 2018. The net profit margin as shown in the table above has
declined over the years which is due to the high costs of operations of the business. The net
profit margin for the business for the year 2018 is shown to be 4.48% which was shown to be
6.67 in 2014. From 2014, the sales of the business has increased rapidly and so has the costs of
operations and therefore there is a fall in the net profit margin of the business (Carraher & Van
Auken, 2013). The return on assets and return on equity of a business are considered to be
important financial indicator for the success of the business. The return on equity has declined
heavily as compared to 2017 analysis which suggest that the business is not earning enough
returns on its equity and the growth is shown to be negative (Delen, Kuzey & Uyar, 2013). The
return on assets of the business also demonstrate a similar trend and the growth is in negative
which is shown to be -23.14%. The return on invested capital of the business is shown to be on a
fall as well which is due to the fact of fall in the profits of the business. The return on invested
6
FUNDAMENTAL OF VALUE CREATION
capital of the business is shown to be highest in 2014 for which the return on investment is
computed to be 25.14% and in the next year the return on investment estimate has significantly
reduced as shown in the table which is shown above. The estimate of 2015 is shown to be
19.65% which is shown to have significantly improved in the next two years which is shown to
be 21.40% and 21.43% respectively. In 2018 due to the fall in the profits of the business, the
estimate is shown to have considerably fallen and the same is shown to be 16.97%. The growth
in this estimate is also shown to be in negative and the same is shown to be -20.81%.
Figure 2: (Graph portraying Profitability ratios of Ramsay Healthcare Ltd)
Source: (Created by the Author)
The above graph portrays the profitability ratios of the business and also shows trendlines
depicting growth and fluctuation in the ratios of the business. The above graph shows an analysis
for a five years period as demonstrated above.
FUNDAMENTAL OF VALUE CREATION
capital of the business is shown to be highest in 2014 for which the return on investment is
computed to be 25.14% and in the next year the return on investment estimate has significantly
reduced as shown in the table which is shown above. The estimate of 2015 is shown to be
19.65% which is shown to have significantly improved in the next two years which is shown to
be 21.40% and 21.43% respectively. In 2018 due to the fall in the profits of the business, the
estimate is shown to have considerably fallen and the same is shown to be 16.97%. The growth
in this estimate is also shown to be in negative and the same is shown to be -20.81%.
Figure 2: (Graph portraying Profitability ratios of Ramsay Healthcare Ltd)
Source: (Created by the Author)
The above graph portrays the profitability ratios of the business and also shows trendlines
depicting growth and fluctuation in the ratios of the business. The above graph shows an analysis
for a five years period as demonstrated above.
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FUNDAMENTAL OF VALUE CREATION
The profitability ratios of Sonic Healthcare ltd is computed considering the estimates
which are provided in the annual reports of the business. The key financial ratios relating to
profitability of Sonic Healthcare ltd is shown below:
Growth Rate
Particulars 2013 2014 2015 2016 2017 2018 2014 2015 2016 2017
201
8
Net Profit Margin
9.78
%
9.99
%
8.46
%
9.16
%
8.74
%
8.83
%
2.15
%
-
15.32
%
8.27
%
-
4.59
%
1.0
3%
Return on Equity
11.5
7%
12.4
9%
10.7
0%
12.3
7%
11.5
4%
11.7
1%
7.95
%
-
14.33
%
15.6
1%
-
6.71
%
1.4
7%
Return on Assets
6.93
%
7.41
%
6.18
%
6.85
%
6.29
%
6.72
%
6.93
%
-
16.60
%
10.8
4%
-
8.18
%
6.8
4%
Return on
Invested Capital
41.8
3%
9.74
%
37.1
0%
47.1
6%
8.81
%
9.19
%
-
76.72
%
280.9
0%
27.1
2%
-
81.32
%
4.3
1%
2014 2015 2016 2017 2018
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
-100.00%
-50.00%
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
300.00%
Profitability Ratios
Net Profit Margin Return on Equity Return on Assets
Return on Invested Capital NP Growth ROE Growth
ROA Growth ROIC Growth
Figure 3: (Graph portraying Profitability ratios of Sonic Healthcare Ltd)
FUNDAMENTAL OF VALUE CREATION
The profitability ratios of Sonic Healthcare ltd is computed considering the estimates
which are provided in the annual reports of the business. The key financial ratios relating to
profitability of Sonic Healthcare ltd is shown below:
Growth Rate
Particulars 2013 2014 2015 2016 2017 2018 2014 2015 2016 2017
201
8
Net Profit Margin
9.78
%
9.99
%
8.46
%
9.16
%
8.74
%
8.83
%
2.15
%
-
15.32
%
8.27
%
-
4.59
%
1.0
3%
Return on Equity
11.5
7%
12.4
9%
10.7
0%
12.3
7%
11.5
4%
11.7
1%
7.95
%
-
14.33
%
15.6
1%
-
6.71
%
1.4
7%
Return on Assets
6.93
%
7.41
%
6.18
%
6.85
%
6.29
%
6.72
%
6.93
%
-
16.60
%
10.8
4%
-
8.18
%
6.8
4%
Return on
Invested Capital
41.8
3%
9.74
%
37.1
0%
47.1
6%
8.81
%
9.19
%
-
76.72
%
280.9
0%
27.1
2%
-
81.32
%
4.3
1%
2014 2015 2016 2017 2018
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
-100.00%
-50.00%
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
300.00%
Profitability Ratios
Net Profit Margin Return on Equity Return on Assets
Return on Invested Capital NP Growth ROE Growth
ROA Growth ROIC Growth
Figure 3: (Graph portraying Profitability ratios of Sonic Healthcare Ltd)
8
FUNDAMENTAL OF VALUE CREATION
Source: (Created by the Author)
The above table and graph shows the key financial ratios of Sonic Healthcare ltd which is
computed considering the key profitability ratios of the business which are net profit margin.
Return on equity, return on assets and return on investment of the business. The net profit margin
of the business shows an estimate of 8.83% for the current year which has improved slightly in
comparison to previous year analysis which is shown to be 8.74. The growth in profit margin in
profit margin of the business is small and therefore there is a growth of 1,03$. The reason for the
low profits may be due to the lower sales which is achieved by the business or higher costs
which are incurred by the business. The return on assets of the business is shown to have
improved significantly in comparison to previous year estimates and this is a positive sign for the
business. The highest return which is computed for return on assets of the business is shown to
be 7.41% for 2014. The return on equity of the business for the year 2018 is shown to be 11.71%
which has improved significantly in comparison to past year estimate however it is still not better
than 2014 estimate which is shown to be 12.94%. The return on invested capital of the business
has reduced significantly during the current year in comparison to past year analysis which needs
to be considered by the management Healthcare ltd.
Comparative Analysis
2013 2014 2015 2016 2017 2018
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
Net Profit Margin
Sonic Health Care Ltd Ramsay Healthcare Ltd
FUNDAMENTAL OF VALUE CREATION
Source: (Created by the Author)
The above table and graph shows the key financial ratios of Sonic Healthcare ltd which is
computed considering the key profitability ratios of the business which are net profit margin.
Return on equity, return on assets and return on investment of the business. The net profit margin
of the business shows an estimate of 8.83% for the current year which has improved slightly in
comparison to previous year analysis which is shown to be 8.74. The growth in profit margin in
profit margin of the business is small and therefore there is a growth of 1,03$. The reason for the
low profits may be due to the lower sales which is achieved by the business or higher costs
which are incurred by the business. The return on assets of the business is shown to have
improved significantly in comparison to previous year estimates and this is a positive sign for the
business. The highest return which is computed for return on assets of the business is shown to
be 7.41% for 2014. The return on equity of the business for the year 2018 is shown to be 11.71%
which has improved significantly in comparison to past year estimate however it is still not better
than 2014 estimate which is shown to be 12.94%. The return on invested capital of the business
has reduced significantly during the current year in comparison to past year analysis which needs
to be considered by the management Healthcare ltd.
Comparative Analysis
2013 2014 2015 2016 2017 2018
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
Net Profit Margin
Sonic Health Care Ltd Ramsay Healthcare Ltd
9
FUNDAMENTAL OF VALUE CREATION
Figure 4: (Graph showing comparative analysis of Net profit Margin of Both Companies)
Source: (Created by the Author)
As shown in the graph above, the net profit margin of Sonic Healthcare ltd is much better
than Ramsay Healthcare ltd. The net profit margin is the most important estimate of profitability
ratios and the same is shown to be better for Sonic Healthcare ltd. The return on assets of the
business for Sonic Healthcare ltd is shown to be better than Ramsay Healthcare ltd in current
year as well in past four years which suggest that the operational structure of Sonic Healthcare
ltd is better than Ramsay Healthcare ltd. The return on equity estimate which is shown for the
Ramsay Healthcare ltd is shown to be 17.36% whereas the same for Sonic Healthcare ltd is
shown to be 11,71% which shows that the management of Ramsay Healthcare ltd fulfills the
needs of the shareholders better than Sonic Healthcare ltd. The return on investment for Ramsay
Healthcare ltd is shown to be better than Sonic Healthcare ltd which is a good sign.
In an overall estimate it can be said that the profitability of Sonic Healthcare ltd is better
than Ramsay Healthcare ltd and therefore the management of Ramsay Healthcare ltd needs to
think about focusing on the profitability aspect of the business.
Liquidity Ratio Analysis
The liquidity ratios of a business show the cash position of the business and also the
ability of the business to meet the current obligations of the business in an effective manner. The
liquidity ratios of the business consist of current ratio and quick ratio which are considered to be
an important indicator for the success of the business (Ongore & Kusa, 2013). In the case of
Ramsay Healthcare ltd, liquidity ratios o the business is computed considering the financial
statements of the business for five year and the same is presented in the table below:
Growth Rate
Particulars
201
3
201
4
201
5
201
6
201
7
201
8 2014 2015 2016 2017 2018
Current Ratio
1.2
3
0.9
7
0.7
6
0.9
2
1.0
3
1.1
9
-
21.14
%
-
21.65
%
21.05
%
11.96
%
15.53
%
Quick Ratio 1.0
9
0.8
3
0.6
7
0.8
2
0.9
1
1.0
5
-
23.85
-
19.28
22.39
%
10.98
%
15.38
%
FUNDAMENTAL OF VALUE CREATION
Figure 4: (Graph showing comparative analysis of Net profit Margin of Both Companies)
Source: (Created by the Author)
As shown in the graph above, the net profit margin of Sonic Healthcare ltd is much better
than Ramsay Healthcare ltd. The net profit margin is the most important estimate of profitability
ratios and the same is shown to be better for Sonic Healthcare ltd. The return on assets of the
business for Sonic Healthcare ltd is shown to be better than Ramsay Healthcare ltd in current
year as well in past four years which suggest that the operational structure of Sonic Healthcare
ltd is better than Ramsay Healthcare ltd. The return on equity estimate which is shown for the
Ramsay Healthcare ltd is shown to be 17.36% whereas the same for Sonic Healthcare ltd is
shown to be 11,71% which shows that the management of Ramsay Healthcare ltd fulfills the
needs of the shareholders better than Sonic Healthcare ltd. The return on investment for Ramsay
Healthcare ltd is shown to be better than Sonic Healthcare ltd which is a good sign.
In an overall estimate it can be said that the profitability of Sonic Healthcare ltd is better
than Ramsay Healthcare ltd and therefore the management of Ramsay Healthcare ltd needs to
think about focusing on the profitability aspect of the business.
Liquidity Ratio Analysis
The liquidity ratios of a business show the cash position of the business and also the
ability of the business to meet the current obligations of the business in an effective manner. The
liquidity ratios of the business consist of current ratio and quick ratio which are considered to be
an important indicator for the success of the business (Ongore & Kusa, 2013). In the case of
Ramsay Healthcare ltd, liquidity ratios o the business is computed considering the financial
statements of the business for five year and the same is presented in the table below:
Growth Rate
Particulars
201
3
201
4
201
5
201
6
201
7
201
8 2014 2015 2016 2017 2018
Current Ratio
1.2
3
0.9
7
0.7
6
0.9
2
1.0
3
1.1
9
-
21.14
%
-
21.65
%
21.05
%
11.96
%
15.53
%
Quick Ratio 1.0
9
0.8
3
0.6
7
0.8
2
0.9
1
1.0
5
-
23.85
-
19.28
22.39
%
10.98
%
15.38
%
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FUNDAMENTAL OF VALUE CREATION
% %
Net Interest
Cover
7.4
1
7.7
0
6.3
0
6.4
7
6.7
1
6.2
9 3.91%
-
18.18
% 2.70% 3.71%
-
6.26%
14%
12%
74%
Liquidity Ratio
Current Ratio
Quick Ratio
Net Interest Cover
Figure 5: (Pie Chart portraying Profitability ratios for 2018)
Source: (Created by the Author)
The above pie chart depicts the liquidity ratios of the business for the year 2018 and the
various components which are included in the same. The liquidity ratios of the business are
shown in the above figure and the same shows current ratio, quick ratio and net interest coverage
ratio as shown in above table. The current ratio of the business is shown to be 1.19 for the year
2018 which shows that the liquidity position of the business is shown to be favorable. The
current ratio of the business has improved from the year 2016 and the same has achieved growth
as shown in the table above which is 15.53% for 2018. The quick ratio of the business is similar
to current ratios but considers liquid assets for computing the ratios. The quick ratio of the
business is shown to be 1.05 for thee year 2018 which further shows that the liquidity position of
the business is appropriate (Gitman, Juchau & Flanagan, 2015). The net interest cover of the
business is shown to be 6.29 which has slightly reduced in comparison to analysis of 2017. The
net interest cover ratio signifies the ability of the company to meet the current borrowings of the
FUNDAMENTAL OF VALUE CREATION
% %
Net Interest
Cover
7.4
1
7.7
0
6.3
0
6.4
7
6.7
1
6.2
9 3.91%
-
18.18
% 2.70% 3.71%
-
6.26%
14%
12%
74%
Liquidity Ratio
Current Ratio
Quick Ratio
Net Interest Cover
Figure 5: (Pie Chart portraying Profitability ratios for 2018)
Source: (Created by the Author)
The above pie chart depicts the liquidity ratios of the business for the year 2018 and the
various components which are included in the same. The liquidity ratios of the business are
shown in the above figure and the same shows current ratio, quick ratio and net interest coverage
ratio as shown in above table. The current ratio of the business is shown to be 1.19 for the year
2018 which shows that the liquidity position of the business is shown to be favorable. The
current ratio of the business has improved from the year 2016 and the same has achieved growth
as shown in the table above which is 15.53% for 2018. The quick ratio of the business is similar
to current ratios but considers liquid assets for computing the ratios. The quick ratio of the
business is shown to be 1.05 for thee year 2018 which further shows that the liquidity position of
the business is appropriate (Gitman, Juchau & Flanagan, 2015). The net interest cover of the
business is shown to be 6.29 which has slightly reduced in comparison to analysis of 2017. The
net interest cover ratio signifies the ability of the company to meet the current borrowings of the
11
FUNDAMENTAL OF VALUE CREATION
business effectively. The growth in the estimate for comparison between 2017 and 2018 is
shown to be -6.26%.
Figure 6: (Graph portraying Liquidity ratios for Ramsay Healthcare ltd)
Source: (Created by the Author)
The liquidity ratios graph is shown above figure with the help of trendlines to track the
fluctuation in the ratios and their respective growth during the five years period. The liquidity
ratios as depicted in the above figure shows that the management of Ramsay Healthcare Ltd are
more than capable of meeting the current obligations of the business effectively. The liquidity is
an important estimate which is considered by every stakeholders of a business and therefore the
management should make attempts to maintain and further improve the liquidity of the business.
In case of Sonic Healthcare ltd, the liquidity ratio of the business are computed and
shown in the table below:
FUNDAMENTAL OF VALUE CREATION
business effectively. The growth in the estimate for comparison between 2017 and 2018 is
shown to be -6.26%.
Figure 6: (Graph portraying Liquidity ratios for Ramsay Healthcare ltd)
Source: (Created by the Author)
The liquidity ratios graph is shown above figure with the help of trendlines to track the
fluctuation in the ratios and their respective growth during the five years period. The liquidity
ratios as depicted in the above figure shows that the management of Ramsay Healthcare Ltd are
more than capable of meeting the current obligations of the business effectively. The liquidity is
an important estimate which is considered by every stakeholders of a business and therefore the
management should make attempts to maintain and further improve the liquidity of the business.
In case of Sonic Healthcare ltd, the liquidity ratio of the business are computed and
shown in the table below:
12
FUNDAMENTAL OF VALUE CREATION
Growth Rate
Particulars
201
3
201
4
201
5
201
6
201
7
201
8 2014 2015 2016 2017 2018
Current Ratio
0.8
3
0.8
9
1.7
3 0.93 0.81
1.4
2 7.23%
94.38
%
-
46.24
%
-
12.90
%
75.31
%
Quick Ratio
0.7
7
0.8
3
1.6
0 0.86 0.75
1.3
0 7.79%
92.77
%
-
46.25
%
-
12.79
%
73.33
%
Net Interest
Cover
8.0
8
9.9
6
9.9
3
10.5
1
10.1
3
9.0
4
23.27
%
-
0.30% 5.84% -3.62%
-
10.76
%
2014 2015 2016 2017 2018
0.00
2.00
4.00
6.00
8.00
10.00
12.00
-60.00%
-40.00%
-20.00%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
Liquidity Ratio
Current Ratio Quick Ratio Net Interest Cover
CR Growth QR Growth NIC Growth
Figure 7: (Graph portraying Liquidity ratios for Sonic Healthcare ltd)
Source: (Created by the Author)
FUNDAMENTAL OF VALUE CREATION
Growth Rate
Particulars
201
3
201
4
201
5
201
6
201
7
201
8 2014 2015 2016 2017 2018
Current Ratio
0.8
3
0.8
9
1.7
3 0.93 0.81
1.4
2 7.23%
94.38
%
-
46.24
%
-
12.90
%
75.31
%
Quick Ratio
0.7
7
0.8
3
1.6
0 0.86 0.75
1.3
0 7.79%
92.77
%
-
46.25
%
-
12.79
%
73.33
%
Net Interest
Cover
8.0
8
9.9
6
9.9
3
10.5
1
10.1
3
9.0
4
23.27
%
-
0.30% 5.84% -3.62%
-
10.76
%
2014 2015 2016 2017 2018
0.00
2.00
4.00
6.00
8.00
10.00
12.00
-60.00%
-40.00%
-20.00%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
Liquidity Ratio
Current Ratio Quick Ratio Net Interest Cover
CR Growth QR Growth NIC Growth
Figure 7: (Graph portraying Liquidity ratios for Sonic Healthcare ltd)
Source: (Created by the Author)
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FUNDAMENTAL OF VALUE CREATION
The liquidity ratio which is computed for Sonic ltd is shown in the above graph and table.
The current ratio of the business is shown to be have improved significantly during the year as
shown in the table above. The current ratio is shown to be 1.42 in 2018 and the same was 0.81 in
2017 which shows that the current ratio of the business is shown to be appropriate for the
business (Klingenberg et al., 2013). The quick ratios of the business also show liquidity position
of the business and the same is shown to be 1.30 for 2018 which has improved tremendously
during the year.
Comparative Analysis
2013 2014 2015 2016 2017 2018
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
Current Rati o
Sonic Health Care Ltd Ramsay Healthcare Ltd
Figure 8: (Graph showing comparative analysis of Current Ratio of Both Companies)
Source: (Created by the Author)
The graph above shows that the liquidity position of Ramsay Ltd was better till 2014 and
there is a fall in the liquidity in 2015 and at the same time the current ratio of Sonic ltd increased
tremendously is sown to be above Ramsay Ltd. In 2017 the current ratio of Ramsay ltd is shown
to be better than Sonic ltd. This shows the close competitiveness between the two companies and
the graph clearly shows how well the management of both the companies plan to improve the
liquidity position of the business year by year. The quick ratio of the both the companies also
show similar results.
FUNDAMENTAL OF VALUE CREATION
The liquidity ratio which is computed for Sonic ltd is shown in the above graph and table.
The current ratio of the business is shown to be have improved significantly during the year as
shown in the table above. The current ratio is shown to be 1.42 in 2018 and the same was 0.81 in
2017 which shows that the current ratio of the business is shown to be appropriate for the
business (Klingenberg et al., 2013). The quick ratios of the business also show liquidity position
of the business and the same is shown to be 1.30 for 2018 which has improved tremendously
during the year.
Comparative Analysis
2013 2014 2015 2016 2017 2018
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
Current Rati o
Sonic Health Care Ltd Ramsay Healthcare Ltd
Figure 8: (Graph showing comparative analysis of Current Ratio of Both Companies)
Source: (Created by the Author)
The graph above shows that the liquidity position of Ramsay Ltd was better till 2014 and
there is a fall in the liquidity in 2015 and at the same time the current ratio of Sonic ltd increased
tremendously is sown to be above Ramsay Ltd. In 2017 the current ratio of Ramsay ltd is shown
to be better than Sonic ltd. This shows the close competitiveness between the two companies and
the graph clearly shows how well the management of both the companies plan to improve the
liquidity position of the business year by year. The quick ratio of the both the companies also
show similar results.
14
FUNDAMENTAL OF VALUE CREATION
Solvency Ratio Analysis
The solvency ratios of the business are considered by analyzing the capital structure of
the business. The solvency ratio of the business as shown in the computation reflects the capital
structure of the business which is made up of both equity and debt capital of the business. A
table showing computation of key ratios falling under solvency category is shown below:
Growth Rate
Particulars 2013 2014 2015 2016 2017 2018
201
4 2015
201
6 2017 2018
Financial
Leverage 2.63 2.61 4.16 4.04 3.53 3.81
-
0.76
%
59.39
%
-
2.88
%
-
12.62
%
7.93
%
Gross
Gearing
81.7
7%
78.4
5%
171.8
0%
168.3
6%
141.9
2%
161.4
8%
-
4.06
%
118.9
9%
-
2.00
%
-
15.70
%
13.7
8%
Net Gearing
64.1
1%
68.8
6%
154.5
7%
152.2
8%
124.1
3%
130.0
0%
7.41
%
124.4
7%
-
1.48
%
-
18.49
%
4.73
%
381.00%
161.48%
130.00%
Solvency Ratio
Financial Leverage Gross Gearing Net Gearing
Figure 9: (Pie Chart portraying Liquidity ratios for the year 2018)
Source: (Created by the Author)
FUNDAMENTAL OF VALUE CREATION
Solvency Ratio Analysis
The solvency ratios of the business are considered by analyzing the capital structure of
the business. The solvency ratio of the business as shown in the computation reflects the capital
structure of the business which is made up of both equity and debt capital of the business. A
table showing computation of key ratios falling under solvency category is shown below:
Growth Rate
Particulars 2013 2014 2015 2016 2017 2018
201
4 2015
201
6 2017 2018
Financial
Leverage 2.63 2.61 4.16 4.04 3.53 3.81
-
0.76
%
59.39
%
-
2.88
%
-
12.62
%
7.93
%
Gross
Gearing
81.7
7%
78.4
5%
171.8
0%
168.3
6%
141.9
2%
161.4
8%
-
4.06
%
118.9
9%
-
2.00
%
-
15.70
%
13.7
8%
Net Gearing
64.1
1%
68.8
6%
154.5
7%
152.2
8%
124.1
3%
130.0
0%
7.41
%
124.4
7%
-
1.48
%
-
18.49
%
4.73
%
381.00%
161.48%
130.00%
Solvency Ratio
Financial Leverage Gross Gearing Net Gearing
Figure 9: (Pie Chart portraying Liquidity ratios for the year 2018)
Source: (Created by the Author)
15
FUNDAMENTAL OF VALUE CREATION
The pie shown above relates to solvency ratios of the business for the year 2018. The
above table shows computation of key solvency ratios of the business during the year. The ratios
which are shown in the above figure are financial leverage, gross gearing and net gearing. The
financial leverage reflects the borrowings of the business and the estimate is shown to be 3.81
and the estimate is shown to be increasing and the growth is shown to be 7.93%. The gross
gearing and net gearing ratios of the business also shows the level of debt capital which is used
by the business for financing the activities of the business on day to day basis (Kohansal et al.,
2013). Both gross gearing and net gearing ratio of the business has increased considerably in
relation to previous year’s estimate which suggest that the application of debt capital in the
business has increased considerably in the present year. The growth in gross gearing ratio and net
gearing ratio in comparison to estimate of 2017 is shown to be 13.78% and 4.73% respectively.
Figure 10: (Graph portraying Solvency ratios of Ramsay Healthcare ltd)
Source: (Created by the Author)
FUNDAMENTAL OF VALUE CREATION
The pie shown above relates to solvency ratios of the business for the year 2018. The
above table shows computation of key solvency ratios of the business during the year. The ratios
which are shown in the above figure are financial leverage, gross gearing and net gearing. The
financial leverage reflects the borrowings of the business and the estimate is shown to be 3.81
and the estimate is shown to be increasing and the growth is shown to be 7.93%. The gross
gearing and net gearing ratios of the business also shows the level of debt capital which is used
by the business for financing the activities of the business on day to day basis (Kohansal et al.,
2013). Both gross gearing and net gearing ratio of the business has increased considerably in
relation to previous year’s estimate which suggest that the application of debt capital in the
business has increased considerably in the present year. The growth in gross gearing ratio and net
gearing ratio in comparison to estimate of 2017 is shown to be 13.78% and 4.73% respectively.
Figure 10: (Graph portraying Solvency ratios of Ramsay Healthcare ltd)
Source: (Created by the Author)
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16
FUNDAMENTAL OF VALUE CREATION
The above graph shows the solvency ratios of the business in relation to the capital
structure which is used by the business for meeting all the expenses of the business. The
solvency ratios graph is shown above figure with the help of trendlines to track the fluctuation in
the ratios and their respective growth during the five years period (KanapickienÄ— & GrundienÄ—,
2015). The decisions which are related to capital structure are considered to be important for
decision making process of the management and also for the overall development and growth of
the business.
In the case of Sonic Healthcare ltd, the solvency ratios are computed in the table which is
shown below:
Growth Rate
Particulars 2013 2014 2015 2016 2017 2018 2014
201
5
201
6
201
7 2018
Financial
Leverage 1.89 1.86 1.91 1.97 2.01 1.91
-
1.59
%
2.69
%
3.14
%
2.03
%
-
4.98%
Gross Gearing
67.12
%
63.39
%
66.91
%
68.98
%
73.18
%
65.28
%
-
5.56
%
5.55
%
3.09
%
6.09
%
-
10.80
%
Net Gearing
59.59
%
55.93
%
59.41
%
61.20
%
62.03
%
57.97
%
-
6.14
%
6.22
%
3.01
%
1.36
%
-
6.55%
FUNDAMENTAL OF VALUE CREATION
The above graph shows the solvency ratios of the business in relation to the capital
structure which is used by the business for meeting all the expenses of the business. The
solvency ratios graph is shown above figure with the help of trendlines to track the fluctuation in
the ratios and their respective growth during the five years period (KanapickienÄ— & GrundienÄ—,
2015). The decisions which are related to capital structure are considered to be important for
decision making process of the management and also for the overall development and growth of
the business.
In the case of Sonic Healthcare ltd, the solvency ratios are computed in the table which is
shown below:
Growth Rate
Particulars 2013 2014 2015 2016 2017 2018 2014
201
5
201
6
201
7 2018
Financial
Leverage 1.89 1.86 1.91 1.97 2.01 1.91
-
1.59
%
2.69
%
3.14
%
2.03
%
-
4.98%
Gross Gearing
67.12
%
63.39
%
66.91
%
68.98
%
73.18
%
65.28
%
-
5.56
%
5.55
%
3.09
%
6.09
%
-
10.80
%
Net Gearing
59.59
%
55.93
%
59.41
%
61.20
%
62.03
%
57.97
%
-
6.14
%
6.22
%
3.01
%
1.36
%
-
6.55%
17
FUNDAMENTAL OF VALUE CREATION
2014 2015 2016 2017 2018
0.00
0.50
1.00
1.50
2.00
2.50
-12.00%
-10.00%
-8.00%
-6.00%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
Solvency Ratio
Financial Leverage Gross Gearing Net Gearing
GG Growth FL Growth NG Growth
Figure 11: (Graph portraying Solvency ratios of Sonic Healthcare ltd)
Source: (Created by the Author)
The solvency ratio of the business shows the capital structure which is used by the
management of the company for financing the activities of the business. Th gross gearing ratio
and net gearing ratio of the business have reduced during the current year which is good sign for
the business. The above graph shows gearing ratios and growth for the same.
Comparative Analysis
FUNDAMENTAL OF VALUE CREATION
2014 2015 2016 2017 2018
0.00
0.50
1.00
1.50
2.00
2.50
-12.00%
-10.00%
-8.00%
-6.00%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
Solvency Ratio
Financial Leverage Gross Gearing Net Gearing
GG Growth FL Growth NG Growth
Figure 11: (Graph portraying Solvency ratios of Sonic Healthcare ltd)
Source: (Created by the Author)
The solvency ratio of the business shows the capital structure which is used by the
management of the company for financing the activities of the business. Th gross gearing ratio
and net gearing ratio of the business have reduced during the current year which is good sign for
the business. The above graph shows gearing ratios and growth for the same.
Comparative Analysis
18
FUNDAMENTAL OF VALUE CREATION
2013 2014 2015 2016 2017 2018
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
160.00%
180.00%
Net Gearing
Sonic Health Care Ltd Ramsay Healthcare Ltd
Figure 12: (Graph showing comparative analysis of Net Gearing of Both Companies)
Source: (Created by the Author)
The above graph clearly shows that the net gearing of the business of Ramsay ltd is much
more than Sonic ltd which suggest that the capital structure of Ramsay ltd is much more
influenced by debt capital rather than equity capital which shows that the level of risks in the
business is also high in comparison to Sonic ltd.
Industry Analysis
Profitability Analysis
As per the analysis of the financial information which are available for a number of
companies, the profitability of the business which are engaged in the business of healthcare
industry are shown in the graph below:
FUNDAMENTAL OF VALUE CREATION
2013 2014 2015 2016 2017 2018
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
160.00%
180.00%
Net Gearing
Sonic Health Care Ltd Ramsay Healthcare Ltd
Figure 12: (Graph showing comparative analysis of Net Gearing of Both Companies)
Source: (Created by the Author)
The above graph clearly shows that the net gearing of the business of Ramsay ltd is much
more than Sonic ltd which suggest that the capital structure of Ramsay ltd is much more
influenced by debt capital rather than equity capital which shows that the level of risks in the
business is also high in comparison to Sonic ltd.
Industry Analysis
Profitability Analysis
As per the analysis of the financial information which are available for a number of
companies, the profitability of the business which are engaged in the business of healthcare
industry are shown in the graph below:
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19
FUNDAMENTAL OF VALUE CREATION
Ansell Ltd
Cochlear Limited
CSL Limited
Estia Health Limited
Ramsay Limited
Sonic Limited
Healthscope Limited
Mayne Pharma Limited
Fortis Healthcare Ltd
Sirtex Medical
-12000 -10000 -8000 -6000 -4000 -2000 0 2000 4000 6000
Net Profit Analysis
2018 2017 2016 2015 2014
Figure 13: (Graph showing comparative analysis of Net Profit of Industry)
Source: (Created by the Author)
The net profit analysis of the business is shown in the graph which is shown above. The
graph shows analysis for 10 companies which are engaged in healthcare sector.
Liquidity Analysis
The liquidity analysis of the industry of Healthcare is compared with the help of current
assets of different companies. The liquidity of the companies will be considered on the basis of
the graph shown below:
FUNDAMENTAL OF VALUE CREATION
Ansell Ltd
Cochlear Limited
CSL Limited
Estia Health Limited
Ramsay Limited
Sonic Limited
Healthscope Limited
Mayne Pharma Limited
Fortis Healthcare Ltd
Sirtex Medical
-12000 -10000 -8000 -6000 -4000 -2000 0 2000 4000 6000
Net Profit Analysis
2018 2017 2016 2015 2014
Figure 13: (Graph showing comparative analysis of Net Profit of Industry)
Source: (Created by the Author)
The net profit analysis of the business is shown in the graph which is shown above. The
graph shows analysis for 10 companies which are engaged in healthcare sector.
Liquidity Analysis
The liquidity analysis of the industry of Healthcare is compared with the help of current
assets of different companies. The liquidity of the companies will be considered on the basis of
the graph shown below:
20
FUNDAMENTAL OF VALUE CREATION
Ansell Ltd
Cochlear Limited
CSL Limited
Estia Health Limited
Ramsay Limited
Sonic Limited
Healthscope Limited
Mayne Pharma Limited
Fortis Healthcare Ltd
Sirtex Medical
0
5000
10000
15000
20000
25000
Current Assets
2014 2015 2016 2017 2018
Figure 14: (Graph showing comparative analysis of Current Assets of Industry)
Source: (Created by the Author)
The liquidity of the business is shown in the graph which is shown above representing
liquidity position of ten different companies belonging to same industry.
Solvency Analysis
The solvency analysis of the business considered financial leverage for the purpose of
analyzing the capital structure which is used by ten companies as shown in figure above.
FUNDAMENTAL OF VALUE CREATION
Ansell Ltd
Cochlear Limited
CSL Limited
Estia Health Limited
Ramsay Limited
Sonic Limited
Healthscope Limited
Mayne Pharma Limited
Fortis Healthcare Ltd
Sirtex Medical
0
5000
10000
15000
20000
25000
Current Assets
2014 2015 2016 2017 2018
Figure 14: (Graph showing comparative analysis of Current Assets of Industry)
Source: (Created by the Author)
The liquidity of the business is shown in the graph which is shown above representing
liquidity position of ten different companies belonging to same industry.
Solvency Analysis
The solvency analysis of the business considered financial leverage for the purpose of
analyzing the capital structure which is used by ten companies as shown in figure above.
21
FUNDAMENTAL OF VALUE CREATION
Ansell Ltd
Cochlear Limited
CSL Limited
Estia Health Limited
Ramsay Limited
Sonic Limited
Healthscope Limited
Mayne Pharma Limited
Fortis Healthcare Ltd
Sirtex Medical
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Financial Leverage
2014 2015 2016 2017 2018
Figure 15: (Graph showing comparative analysis of Financial Leverage of Industry)
Source: (Created by the Author)
Conclusion
Ramsay Healthcare ltd is engaged in the operations of healthcare services in Australia
and some other countries. The business has its own pharmacies and emergency wards.The
discussion which is shown above for Ramsay Healthcare ltd shows that the financial
performance of the business is appropriate and the business is heading towards growth and
development. The profitability, solvency and liquidity ratios of the business which is shown in
the above figure reflects the improvements in the financial position of the business.
In this report a critical analysis of the three important statements which are included in
the financial statements are analyzed in a detailed process. The profit and loss statement for the
business shows different elements which are included in the statement and the different activities
which are undertaken by the management for generating revenues and profits for the business.
Even though the revenues of the business have increased however the profit margin of the
FUNDAMENTAL OF VALUE CREATION
Ansell Ltd
Cochlear Limited
CSL Limited
Estia Health Limited
Ramsay Limited
Sonic Limited
Healthscope Limited
Mayne Pharma Limited
Fortis Healthcare Ltd
Sirtex Medical
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Financial Leverage
2014 2015 2016 2017 2018
Figure 15: (Graph showing comparative analysis of Financial Leverage of Industry)
Source: (Created by the Author)
Conclusion
Ramsay Healthcare ltd is engaged in the operations of healthcare services in Australia
and some other countries. The business has its own pharmacies and emergency wards.The
discussion which is shown above for Ramsay Healthcare ltd shows that the financial
performance of the business is appropriate and the business is heading towards growth and
development. The profitability, solvency and liquidity ratios of the business which is shown in
the above figure reflects the improvements in the financial position of the business.
In this report a critical analysis of the three important statements which are included in
the financial statements are analyzed in a detailed process. The profit and loss statement for the
business shows different elements which are included in the statement and the different activities
which are undertaken by the management for generating revenues and profits for the business.
Even though the revenues of the business have increased however the profit margin of the
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22
FUNDAMENTAL OF VALUE CREATION
business has fallen as shown in the profit and loss statement. The balance sheet of the business is
appropriately presented showing the business has more current assets in comparison to current
liabilities of the business. The cash flow statement also shows a positive net cash from operation
figure which shows that the liquidity position of the business is favorable. In the second part
significant financial ratios are computed and analyzed according to identify the financial
performance of the business.
The above analysis also shows detailed performance analysis of the income statement,
balance sheet and cash flow statement of the business. The analysis shows that profitability and
liquidity ratio of Sonic ltd is better than Ramsay Healthcare ltd and therefore the management
needs to come up with a plan of action in order to tackle the situation in hand. The analysis also
confirms that the business is at its growth phase and there is further scope of development for the
business as it proceeds further in future. The business has further good liquidity positions and
also a favorable capital structure and therefore can take on any projects as there is ample amount
of funds in the business.
FUNDAMENTAL OF VALUE CREATION
business has fallen as shown in the profit and loss statement. The balance sheet of the business is
appropriately presented showing the business has more current assets in comparison to current
liabilities of the business. The cash flow statement also shows a positive net cash from operation
figure which shows that the liquidity position of the business is favorable. In the second part
significant financial ratios are computed and analyzed according to identify the financial
performance of the business.
The above analysis also shows detailed performance analysis of the income statement,
balance sheet and cash flow statement of the business. The analysis shows that profitability and
liquidity ratio of Sonic ltd is better than Ramsay Healthcare ltd and therefore the management
needs to come up with a plan of action in order to tackle the situation in hand. The analysis also
confirms that the business is at its growth phase and there is further scope of development for the
business as it proceeds further in future. The business has further good liquidity positions and
also a favorable capital structure and therefore can take on any projects as there is ample amount
of funds in the business.
23
FUNDAMENTAL OF VALUE CREATION
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monetary transmission: A loan-level analysis. Journal of banking & Finance, 37(8),
2812-2822.
Bhandari, S. B., & Iyer, R. (2013). Predicting business failure using cash flow statement based
measures. Managerial Finance, 39(7), 667-676.
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(2014). Analytical and management approaches to modeling of the accounting balance
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FUNDAMENTAL OF VALUE CREATION
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monetary transmission: A loan-level analysis. Journal of banking & Finance, 37(8),
2812-2822.
Bhandari, S. B., & Iyer, R. (2013). Predicting business failure using cash flow statement based
measures. Managerial Finance, 39(7), 667-676.
Bobryshev, A. N., Uryadova, T. N., Lyubenkova, E. P., Yakovenko, V. S., & Alekseeva, O. A.
(2014). Analytical and management approaches to modeling of the accounting balance
sheet. Life Science Journal, 11(8), 502-506.
Brochet, F., Jagolinzer, A. D., & Riedl, E. J. (2013). Mandatory IFRS adoption and financial
statement comparability. Contemporary Accounting Research, 30(4), 1373-1400.
Call, A. C., Chen, S., & Tong, Y. H. (2013). Are analysts' cash flow forecasts naïve extensions
of their own earnings forecasts?. Contemporary Accounting Research, 30(2), 438-465.
Carraher, S., & Van Auken, H. (2013). The use of financial statements for decision making by
small firms. Journal of Small Business & Entrepreneurship, 26(3), 323-336.
Delen, D., Kuzey, C., & Uyar, A. (2013). Measuring firm performance using financial ratios: A
decision tree approach. Expert Systems with Applications, 40(10), 3970-3983.
Farshadfar, S., & Monem, R. (2013). Further evidence on the usefulness of direct method cash
flow components for forecasting future cash flows. The international journal of
accounting, 48(1), 111-133.
Financials.morningstar.com (2018). . Income Statement for Ramsay Health Care Ltd (RHC)
from Morningstar.com. Retrieved 12 September 2018,
fromhttps://financials.morningstar.com/incomestatement/is.html?
t=0P00006WUP&culture=en&ops=clear
Gitman, L. J., Juchau, R., & Flanagan, J. (2015). Principles of managerial finance. Pearson
Higher Education AU.
24
FUNDAMENTAL OF VALUE CREATION
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November.
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Journal of Economics and Economic Policies: Intervention, 10(2), 136-157.
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profitability of listed banks in Ghana. International Journal of Business and Social
Science, 4(3).
Lawrence, A. (2013). Individual investors and financial disclosure. Journal of Accounting and
Economics, 56(1), 130-147.
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Learning.
Ongore, V. O., & Kusa, G. B. (2013). Determinants of financial performance of commercial
banks in Kenya. International Journal of Economics and Financial Issues, 3(1), 237-252.
Robinson, T. R., Henry, E., Pirie, W. L., Broihahn, M. A., & Cope, A. T. (2015). International
Financial Statement Analysis, (CFA Institute Investment Series). John Wiley & Sons.
Weil, R. L., Schipper, K., & Francis, J. (2013). Financial accounting: an introduction to
concepts, methods and uses. Cengage Learning.
FUNDAMENTAL OF VALUE CREATION
Jagannath, A., & Koller, T. (2013). Building a better income statement. Mckinsey & Company.
November.
Kanapickienė, R., & Grundienė, Ž. (2015). The model of fraud detection in financial statements
by means of financial ratios. Procedia-Social and Behavioral Sciences, 213, 321-327.
Klingenberg, B., Timberlake, R., Geurts, T. G., & Brown, R. J. (2013). The relationship of
operational innovation and financial performance—A critical perspective. International
Journal of Production Economics, 142(2), 317-323.
Kohansal, M. R., Dadrasmoghadam, A., Mahjori Karmozdi, K., & Mohseni, A. (2013).
Relationship between financial ratios and stock prices for the food industry firms in stock
exchange of Iran. World Applied Programming,
Koo, R. (2013). Balance sheet recession as the ‘other half’of macroeconomics. European
Journal of Economics and Economic Policies: Intervention, 10(2), 136-157.
Lartey, V. C., Antwi, S., & Boadi, E. K. (2013). The relationship between liquidity and
profitability of listed banks in Ghana. International Journal of Business and Social
Science, 4(3).
Lawrence, A. (2013). Individual investors and financial disclosure. Journal of Accounting and
Economics, 56(1), 130-147.
Needles, B. E., Powers, M., & Crosson, S. V. (2013). Principles of accounting. Cengage
Learning.
Ongore, V. O., & Kusa, G. B. (2013). Determinants of financial performance of commercial
banks in Kenya. International Journal of Economics and Financial Issues, 3(1), 237-252.
Robinson, T. R., Henry, E., Pirie, W. L., Broihahn, M. A., & Cope, A. T. (2015). International
Financial Statement Analysis, (CFA Institute Investment Series). John Wiley & Sons.
Weil, R. L., Schipper, K., & Francis, J. (2013). Financial accounting: an introduction to
concepts, methods and uses. Cengage Learning.
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FUNDAMENTAL OF VALUE CREATION
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Financial & managerial accounting.
John Wiley & Sons.
Appendix
Profit and Loss Statement
Item 06/13 06/14 06/15 06/16 06/17 06/18
Operating Revenue
4,134,06
4,000.00
4,909,314
,000.00
7,319,517
,000.00
8,647,62
3,000.00
8,667,17
9,000.00
9,136,62
6,000.00
Other Revenue
45,661,0
00.00
20,902,00
0.00
41,716,00
0.00
42,847,0
00.00
38,309,0
00.00
40,124,0
00.00
Total Revenue
Excluding Interest
4,179,72
5,000.00
4,930,216
,000.00
7,361,233
,000.00
8,690,47
0,000.00
8,705,48
8,000.00
9,176,75
0,000.00
Operating Expenses
-
3,548,14
5,000.00
-
4,182,168
,000.00
-
6,294,125
,000.00
-
7,466,04
3,000.00
-
7,448,67
8,000.00
-
8,029,44
7,000.00
EBITDA
631,580,
000.00
748,048,0
00.00
1,067,108
,000.00
1,224,42
7,000.00
1,256,81
0,000.00
1,147,30
3,000.00
Depreciation
-
140,731,
000.00
-
160,835,0
00.00
-
289,499,0
00.00
-
351,323,
000.00
-
352,784,
000.00
-
372,791,
000.00
Amortisation
-
6,275,00
0.00
-
8,885,000
.00
-
16,442,00
0.00
-
23,020,0
00.00
-
21,152,0
00.00
-
19,211,0
00.00
Depreciation and
Amortisation
-
147,006,
000.00
-
169,720,0
00.00
-
305,941,0
00.00
-
374,343,
000.00
-
373,936,
000.00
-
392,002,
000.00
EBIT
484,574,
000.00
578,328,0
00.00
761,167,0
00.00
850,084,
000.00
882,874,
000.00
755,301,
000.00
Interest Revenue
4,257,00
0.00
2,053,000
.00
5,290,000
.00
7,081,00
0.00
1,787,00
0.00
4,621,00
0.00
Interest Expense
-
69,695,0
00.00
-
77,135,00
0.00
-
126,155,0
00.00
-
138,498,
000.00
-
133,388,
000.00
-
124,690,
000.00
Net Interest
Expense
-
65,438,0
00.00
-
75,082,00
0.00
-
120,865,0
00.00
-
131,417,
000.00
-
131,601,
000.00
-
120,069,
000.00
PreTax Profit
419,136,
000.00
503,246,0
00.00
640,302,0
00.00
718,667,
000.00
751,273,
000.00
635,232,
000.00
Tax Expense
-
126,293,
000.00
-
150,791,0
00.00
-
221,216,0
00.00
-
197,674,
000.00
-
198,669,
000.00
-
196,714,
000.00
FUNDAMENTAL OF VALUE CREATION
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Financial & managerial accounting.
John Wiley & Sons.
Appendix
Profit and Loss Statement
Item 06/13 06/14 06/15 06/16 06/17 06/18
Operating Revenue
4,134,06
4,000.00
4,909,314
,000.00
7,319,517
,000.00
8,647,62
3,000.00
8,667,17
9,000.00
9,136,62
6,000.00
Other Revenue
45,661,0
00.00
20,902,00
0.00
41,716,00
0.00
42,847,0
00.00
38,309,0
00.00
40,124,0
00.00
Total Revenue
Excluding Interest
4,179,72
5,000.00
4,930,216
,000.00
7,361,233
,000.00
8,690,47
0,000.00
8,705,48
8,000.00
9,176,75
0,000.00
Operating Expenses
-
3,548,14
5,000.00
-
4,182,168
,000.00
-
6,294,125
,000.00
-
7,466,04
3,000.00
-
7,448,67
8,000.00
-
8,029,44
7,000.00
EBITDA
631,580,
000.00
748,048,0
00.00
1,067,108
,000.00
1,224,42
7,000.00
1,256,81
0,000.00
1,147,30
3,000.00
Depreciation
-
140,731,
000.00
-
160,835,0
00.00
-
289,499,0
00.00
-
351,323,
000.00
-
352,784,
000.00
-
372,791,
000.00
Amortisation
-
6,275,00
0.00
-
8,885,000
.00
-
16,442,00
0.00
-
23,020,0
00.00
-
21,152,0
00.00
-
19,211,0
00.00
Depreciation and
Amortisation
-
147,006,
000.00
-
169,720,0
00.00
-
305,941,0
00.00
-
374,343,
000.00
-
373,936,
000.00
-
392,002,
000.00
EBIT
484,574,
000.00
578,328,0
00.00
761,167,0
00.00
850,084,
000.00
882,874,
000.00
755,301,
000.00
Interest Revenue
4,257,00
0.00
2,053,000
.00
5,290,000
.00
7,081,00
0.00
1,787,00
0.00
4,621,00
0.00
Interest Expense
-
69,695,0
00.00
-
77,135,00
0.00
-
126,155,0
00.00
-
138,498,
000.00
-
133,388,
000.00
-
124,690,
000.00
Net Interest
Expense
-
65,438,0
00.00
-
75,082,00
0.00
-
120,865,0
00.00
-
131,417,
000.00
-
131,601,
000.00
-
120,069,
000.00
PreTax Profit
419,136,
000.00
503,246,0
00.00
640,302,0
00.00
718,667,
000.00
751,273,
000.00
635,232,
000.00
Tax Expense
-
126,293,
000.00
-
150,791,0
00.00
-
221,216,0
00.00
-
197,674,
000.00
-
198,669,
000.00
-
196,714,
000.00
26
FUNDAMENTAL OF VALUE CREATION
Net Profit after Tax
Before Abnormals
292,843,
000.00
352,455,0
00.00
419,086,0
00.00
520,993,
000.00
552,604,
000.00
438,518,
000.00
Abnormals
-
32,482,0
00.00
-
60,506,00
0.00 0.00
-
9,731,00
0.00
-
1,608,00
0.00
-
27,304,0
00.00
Abnormals Tax
8,014,00
0.00
18,115,00
0.00 0.00 0.00 0.00 0.00
Net Abnormals
-
24,468,0
00.00
-
42,391,00
0.00 0.00
-
9,731,00
0.00
-
1,608,00
0.00
-
27,304,0
00.00
Reported NPAT
After Abnormals
268,375,
000.00
310,064,0
00.00
419,086,0
00.00
511,262,
000.00
550,996,
000.00
411,214,
000.00
Outside Equity
Interests
-
1,971,00
0.00
-
6,305,000
.00
-
33,544,00
0.00
-
60,965,0
00.00
-
62,049,0
00.00
-
22,866,0
00.00
Shares Outstanding
at Period End
199,835,
094.00
200,673,9
99.00
202,081,2
52.00
202,081,
252.00
202,081,
252.00
202,081,
252.00
Weighted Average
Number of Shares
200,538,
313.00
201,087,8
47.00
200,985,6
38.00
200,948,
992.00
201,268,
022.00
201,400,
006.00
EPS Adjusted
(cents/share) 135.98 163.91 183.50 220.91 235.68 198.87
EPS After Abnormals
(cents/share) 123.90 143.00 183.50 216.10 234.90 185.60
Balance Sheet
Item 06/13 06/14 06/15 06/16 06/17 06/18
CA - Cash
272,251,0
00.00
167,230,0
00.00
315,861,0
00.00
328,989,0
00.00
419,519,0
00.00
770,566,0
00.00
CA -
Receivables
482,843,0
00.00
547,044,0
00.00
996,234,0
00.00
1,141,607,
000.00
1,172,188,
000.00
1,151,653,
000.00
CA - Prepaid
Expenses
38,713,00
0.00
51,237,00
0.00
99,620,00
0.00
112,041,0
00.00
97,226,00
0.00
113,294,0
00.00
CA -
Inventories
112,565,0
00.00
124,005,0
00.00
191,745,0
00.00
205,012,0
00.00
226,261,0
00.00
276,112,0
00.00
CA -
Investments 0.00 0.00 0.00 0.00 0.00 87,000.00
CA - NCA Held
Sale
73,100,00
0.00 0.00
11,818,00
0.00
22,692,00
0.00
13,383,00
0.00
26,682,00
0.00
CA - Other 893,000.0 792,000.0 38,498,00 32,917,00 31,748,00 33,812,00
FUNDAMENTAL OF VALUE CREATION
Net Profit after Tax
Before Abnormals
292,843,
000.00
352,455,0
00.00
419,086,0
00.00
520,993,
000.00
552,604,
000.00
438,518,
000.00
Abnormals
-
32,482,0
00.00
-
60,506,00
0.00 0.00
-
9,731,00
0.00
-
1,608,00
0.00
-
27,304,0
00.00
Abnormals Tax
8,014,00
0.00
18,115,00
0.00 0.00 0.00 0.00 0.00
Net Abnormals
-
24,468,0
00.00
-
42,391,00
0.00 0.00
-
9,731,00
0.00
-
1,608,00
0.00
-
27,304,0
00.00
Reported NPAT
After Abnormals
268,375,
000.00
310,064,0
00.00
419,086,0
00.00
511,262,
000.00
550,996,
000.00
411,214,
000.00
Outside Equity
Interests
-
1,971,00
0.00
-
6,305,000
.00
-
33,544,00
0.00
-
60,965,0
00.00
-
62,049,0
00.00
-
22,866,0
00.00
Shares Outstanding
at Period End
199,835,
094.00
200,673,9
99.00
202,081,2
52.00
202,081,
252.00
202,081,
252.00
202,081,
252.00
Weighted Average
Number of Shares
200,538,
313.00
201,087,8
47.00
200,985,6
38.00
200,948,
992.00
201,268,
022.00
201,400,
006.00
EPS Adjusted
(cents/share) 135.98 163.91 183.50 220.91 235.68 198.87
EPS After Abnormals
(cents/share) 123.90 143.00 183.50 216.10 234.90 185.60
Balance Sheet
Item 06/13 06/14 06/15 06/16 06/17 06/18
CA - Cash
272,251,0
00.00
167,230,0
00.00
315,861,0
00.00
328,989,0
00.00
419,519,0
00.00
770,566,0
00.00
CA -
Receivables
482,843,0
00.00
547,044,0
00.00
996,234,0
00.00
1,141,607,
000.00
1,172,188,
000.00
1,151,653,
000.00
CA - Prepaid
Expenses
38,713,00
0.00
51,237,00
0.00
99,620,00
0.00
112,041,0
00.00
97,226,00
0.00
113,294,0
00.00
CA -
Inventories
112,565,0
00.00
124,005,0
00.00
191,745,0
00.00
205,012,0
00.00
226,261,0
00.00
276,112,0
00.00
CA -
Investments 0.00 0.00 0.00 0.00 0.00 87,000.00
CA - NCA Held
Sale
73,100,00
0.00 0.00
11,818,00
0.00
22,692,00
0.00
13,383,00
0.00
26,682,00
0.00
CA - Other 893,000.0 792,000.0 38,498,00 32,917,00 31,748,00 33,812,00
27
FUNDAMENTAL OF VALUE CREATION
0 0 0.00 0.00 0.00 0.00
Total Current
Assets
980,365,0
00.00
890,308,0
00.00
1,653,776,
000.00
1,843,258,
000.00
1,960,325,
000.00
2,372,206,
000.00
NCA -
Receivables
24,223,00
0.00
32,630,00
0.00
31,549,00
0.00
47,050,00
0.00
39,257,00
0.00
68,689,00
0.00
NCA -
Inventories 0.00 0.00 0.00 0.00 0.00 0.00
NCA -
Investments
4,222,000.
00
195,670,0
00.00
244,102,0
00.00
242,281,0
00.00
241,350,0
00.00
283,218,0
00.00
NCA - PP&E
1,970,127,
000.00
2,144,837,
000.00
3,591,806,
000.00
3,860,184,
000.00
3,865,832,
000.00
4,113,162,
000.00
NCA -
Intangibles(Ex
GW)
61,738,00
0.00
62,135,00
0.00
103,428,0
00.00
112,389,0
00.00
99,917,00
0.00
110,428,0
00.00
NCA - Goodwill
917,709,0
00.00
1,102,387,
000.00
1,774,914,
000.00
1,947,568,
000.00
1,937,444,
000.00
2,154,072,
000.00
NCA - Future
Tax Benefit
87,495,00
0.00
99,469,00
0.00
204,977,0
00.00
199,726,0
00.00
179,457,0
00.00
199,528,0
00.00
NCA - Other
16,512,00
0.00
23,363,00
0.00
12,426,00
0.00
12,068,00
0.00
11,779,00
0.00
11,566,00
0.00
Total NCA
3,082,026,
000.00
3,660,491,
000.00
5,963,202,
000.00
6,421,266,
000.00
6,375,036,
000.00
6,940,663,
000.00
Total Assets
4,062,391,
000.00
4,550,799,
000.00
7,616,978,
000.00
8,264,524,
000.00
8,335,361,
000.00
9,312,869,
000.00
CL - Account
Payable
642,636,0
00.00
833,473,0
00.00
1,610,417,
000.00
1,726,832,
000.00
1,694,889,
000.00
1,771,569,
000.00
CL - Short-
Term Debt
18,693,00
0.00
34,207,00
0.00
425,198,0
00.00
117,927,0
00.00
85,543,00
0.00
100,078,0
00.00
CL - Provisions
86,543,00
0.00
54,895,00
0.00
135,017,0
00.00
148,980,0
00.00
121,916,0
00.00
127,519,0
00.00
CL - NCL Held
Sale
46,068,00
0.00 0.00 0.00 0.00 0.00 0.00
CL - Other 0.00 0.00 0.00 0.00 0.00 0.00
Total Curr.
Liabilities
793,940,0
00.00
922,575,0
00.00
2,170,632,
000.00
1,993,739,
000.00
1,902,348,
000.00
1,999,166,
000.00
NCL - Account
Payable
13,446,00
0.00
5,805,000.
00
9,572,000.
00
10,110,00
0.00
8,648,000.
00
8,328,000.
00
NCL - Long-
Term Debt
1,242,076,
000.00
1,333,708,
000.00
2,724,071,
000.00
3,326,821,
000.00
3,261,816,
000.00
3,852,032,
000.00
NCL -
Provisions
471,114,0
00.00
545,067,0
00.00
879,616,0
00.00
887,793,0
00.00
803,863,0
00.00
1,005,934,
000.00
NCL - Other 0.00 0.00 0.00 0.00 0.00 0.00
Total NCL
1,726,636,
000.00
1,884,580,
000.00
3,613,259,
000.00
4,224,724,
000.00
4,074,327,
000.00
4,866,294,
000.00
FUNDAMENTAL OF VALUE CREATION
0 0 0.00 0.00 0.00 0.00
Total Current
Assets
980,365,0
00.00
890,308,0
00.00
1,653,776,
000.00
1,843,258,
000.00
1,960,325,
000.00
2,372,206,
000.00
NCA -
Receivables
24,223,00
0.00
32,630,00
0.00
31,549,00
0.00
47,050,00
0.00
39,257,00
0.00
68,689,00
0.00
NCA -
Inventories 0.00 0.00 0.00 0.00 0.00 0.00
NCA -
Investments
4,222,000.
00
195,670,0
00.00
244,102,0
00.00
242,281,0
00.00
241,350,0
00.00
283,218,0
00.00
NCA - PP&E
1,970,127,
000.00
2,144,837,
000.00
3,591,806,
000.00
3,860,184,
000.00
3,865,832,
000.00
4,113,162,
000.00
NCA -
Intangibles(Ex
GW)
61,738,00
0.00
62,135,00
0.00
103,428,0
00.00
112,389,0
00.00
99,917,00
0.00
110,428,0
00.00
NCA - Goodwill
917,709,0
00.00
1,102,387,
000.00
1,774,914,
000.00
1,947,568,
000.00
1,937,444,
000.00
2,154,072,
000.00
NCA - Future
Tax Benefit
87,495,00
0.00
99,469,00
0.00
204,977,0
00.00
199,726,0
00.00
179,457,0
00.00
199,528,0
00.00
NCA - Other
16,512,00
0.00
23,363,00
0.00
12,426,00
0.00
12,068,00
0.00
11,779,00
0.00
11,566,00
0.00
Total NCA
3,082,026,
000.00
3,660,491,
000.00
5,963,202,
000.00
6,421,266,
000.00
6,375,036,
000.00
6,940,663,
000.00
Total Assets
4,062,391,
000.00
4,550,799,
000.00
7,616,978,
000.00
8,264,524,
000.00
8,335,361,
000.00
9,312,869,
000.00
CL - Account
Payable
642,636,0
00.00
833,473,0
00.00
1,610,417,
000.00
1,726,832,
000.00
1,694,889,
000.00
1,771,569,
000.00
CL - Short-
Term Debt
18,693,00
0.00
34,207,00
0.00
425,198,0
00.00
117,927,0
00.00
85,543,00
0.00
100,078,0
00.00
CL - Provisions
86,543,00
0.00
54,895,00
0.00
135,017,0
00.00
148,980,0
00.00
121,916,0
00.00
127,519,0
00.00
CL - NCL Held
Sale
46,068,00
0.00 0.00 0.00 0.00 0.00 0.00
CL - Other 0.00 0.00 0.00 0.00 0.00 0.00
Total Curr.
Liabilities
793,940,0
00.00
922,575,0
00.00
2,170,632,
000.00
1,993,739,
000.00
1,902,348,
000.00
1,999,166,
000.00
NCL - Account
Payable
13,446,00
0.00
5,805,000.
00
9,572,000.
00
10,110,00
0.00
8,648,000.
00
8,328,000.
00
NCL - Long-
Term Debt
1,242,076,
000.00
1,333,708,
000.00
2,724,071,
000.00
3,326,821,
000.00
3,261,816,
000.00
3,852,032,
000.00
NCL -
Provisions
471,114,0
00.00
545,067,0
00.00
879,616,0
00.00
887,793,0
00.00
803,863,0
00.00
1,005,934,
000.00
NCL - Other 0.00 0.00 0.00 0.00 0.00 0.00
Total NCL
1,726,636,
000.00
1,884,580,
000.00
3,613,259,
000.00
4,224,724,
000.00
4,074,327,
000.00
4,866,294,
000.00
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28
FUNDAMENTAL OF VALUE CREATION
Total Liabilities
2,520,576,
000.00
2,807,155,
000.00
5,783,891,
000.00
6,218,463,
000.00
5,976,675,
000.00
6,865,460,
000.00
Share Capital
663,839,0
00.00
663,193,0
00.00
633,333,0
00.00
624,679,0
00.00
642,915,0
00.00
636,770,0
00.00
Reserves
-
1,562,000.
00
20,545,00
0.00
19,219,00
0.00
-
30,304,00
0.00
-
17,556,00
0.00
-
26,260,00
0.00
Retained
Earnings
629,438,0
00.00
766,656,0
00.00
955,114,0
00.00
1,176,349,
000.00
1,398,664,
000.00
1,494,285,
000.00
Other Equity 0.00 0.00 0.00 0.00 0.00 0.00
Convertible
Equity
252,165,0
00.00
252,165,0
00.00
252,165,0
00.00
252,165,0
00.00
252,165,0
00.00
252,165,0
00.00
SE Held Sale 0.00 0.00 0.00 0.00 0.00 0.00
Outside Equity
-
2,065,000.
00
41,085,00
0.00
-
26,744,00
0.00
23,172,00
0.00
82,498,00
0.00
90,449,00
0.00
Total Equity
1,541,815,
000.00
1,743,644,
000.00
1,833,087,
000.00
2,046,061,
000.00
2,358,686,
000.00
2,447,409,
000.00
Cash Flow Statement
Item 06/13 06/14 06/15 06/16 06/17 06/18
Receipts from
Customers
4,129,63
7,000.00
4,874,85
3,000.00
7,280,44
4,000.00
8,575,32
5,000.00
8,643,21
6,000.00
9,238,54
9,000.00
Payments to
Suppliers and
Employees
-
3,487,60
9,000.00
-
4,075,76
5,000.00
-
6,154,26
6,000.00
-
7,341,41
5,000.00
-
7,432,02
5,000.00
-
7,891,43
0,000.00
Dividends Received 0.00 0.00 0.00 0.00 0.00 0.00
Interest Received 0.00 0.00 0.00 0.00 0.00 0.00
Interest Paid
-
70,510,0
00.00
-
73,418,0
00.00
-
175,915,
000.00
-
131,070,
000.00
-
116,663,
000.00
-
114,187,
000.00
Tax Paid
-
121,109,
000.00
-
164,158,
000.00
-
204,028,
000.00
-
197,871,
000.00
-
212,341,
000.00
-
238,245,
000.00
Other Operating
Cashflows 0.00 0.00 0.00 0.00 0.00 0.00
Net Operating
Cashflows
450,409,
000.00
561,512,
000.00
746,235,
000.00
904,969,
000.00
882,187,
000.00
994,687,
000.00
Payment for - - - - - -
FUNDAMENTAL OF VALUE CREATION
Total Liabilities
2,520,576,
000.00
2,807,155,
000.00
5,783,891,
000.00
6,218,463,
000.00
5,976,675,
000.00
6,865,460,
000.00
Share Capital
663,839,0
00.00
663,193,0
00.00
633,333,0
00.00
624,679,0
00.00
642,915,0
00.00
636,770,0
00.00
Reserves
-
1,562,000.
00
20,545,00
0.00
19,219,00
0.00
-
30,304,00
0.00
-
17,556,00
0.00
-
26,260,00
0.00
Retained
Earnings
629,438,0
00.00
766,656,0
00.00
955,114,0
00.00
1,176,349,
000.00
1,398,664,
000.00
1,494,285,
000.00
Other Equity 0.00 0.00 0.00 0.00 0.00 0.00
Convertible
Equity
252,165,0
00.00
252,165,0
00.00
252,165,0
00.00
252,165,0
00.00
252,165,0
00.00
252,165,0
00.00
SE Held Sale 0.00 0.00 0.00 0.00 0.00 0.00
Outside Equity
-
2,065,000.
00
41,085,00
0.00
-
26,744,00
0.00
23,172,00
0.00
82,498,00
0.00
90,449,00
0.00
Total Equity
1,541,815,
000.00
1,743,644,
000.00
1,833,087,
000.00
2,046,061,
000.00
2,358,686,
000.00
2,447,409,
000.00
Cash Flow Statement
Item 06/13 06/14 06/15 06/16 06/17 06/18
Receipts from
Customers
4,129,63
7,000.00
4,874,85
3,000.00
7,280,44
4,000.00
8,575,32
5,000.00
8,643,21
6,000.00
9,238,54
9,000.00
Payments to
Suppliers and
Employees
-
3,487,60
9,000.00
-
4,075,76
5,000.00
-
6,154,26
6,000.00
-
7,341,41
5,000.00
-
7,432,02
5,000.00
-
7,891,43
0,000.00
Dividends Received 0.00 0.00 0.00 0.00 0.00 0.00
Interest Received 0.00 0.00 0.00 0.00 0.00 0.00
Interest Paid
-
70,510,0
00.00
-
73,418,0
00.00
-
175,915,
000.00
-
131,070,
000.00
-
116,663,
000.00
-
114,187,
000.00
Tax Paid
-
121,109,
000.00
-
164,158,
000.00
-
204,028,
000.00
-
197,871,
000.00
-
212,341,
000.00
-
238,245,
000.00
Other Operating
Cashflows 0.00 0.00 0.00 0.00 0.00 0.00
Net Operating
Cashflows
450,409,
000.00
561,512,
000.00
746,235,
000.00
904,969,
000.00
882,187,
000.00
994,687,
000.00
Payment for - - - - - -
29
FUNDAMENTAL OF VALUE CREATION
Purchase of PPE
265,574,
000.00
245,664,
000.00
486,172,
000.00
510,264,
000.00
430,455,
000.00
473,841,
000.00
Proceeds From Sale
of PPE
11,013,0
00.00
1,414,00
0.00
27,157,0
00.00
4,737,00
0.00 0.00 0.00
Investments
Purchased 0.00
-
72,425,0
00.00
-
14,876,0
00.00
-
23,298,0
00.00
-
29,874,0
00.00
-
5,250,00
0.00
Proceeds From Sale
of Investments 0.00 0.00 0.00 0.00 0.00 0.00
Payments for
Purchase of
Subsidiaries
-
91,080,0
00.00
-
227,294,
000.00
-
646,468,
000.00
-
213,718,
000.00
-
24,698,0
00.00
-
170,647,
000.00
Proceeds from Sale
of Subsidiaries 0.00 0.00 0.00 0.00 0.00
13,239,0
00.00
Loans Granted 0.00 0.00 0.00 0.00 0.00 0.00
Loans Repaid 0.00 0.00 0.00 0.00 0.00 0.00
Other Investing
Cashflows
4,257,00
0.00
2,053,00
0.00
5,290,00
0.00
7,081,00
0.00
61,516,0
00.00
4,621,00
0.00
Net Investing
Cashflows
-
341,384,
000.00
-
541,916,
000.00
-
1,115,06
9,000.00
-
735,462,
000.00
-
423,511,
000.00
-
631,878,
000.00
Proceeds from
Issues 0.00
39,027,0
00.00 0.00 0.00 0.00 0.00
Proceeds from
Borrowings
632,897,
000.00
52,895,0
00.00
1,360,47
3,000.00
866,710,
000.00
1,063,51
6,000.00
1,230,64
1,000.00
Repayment of
Borrowings
-
471,868,
000.00
-
20,566,0
00.00
-
472,559,
000.00
-
666,315,
000.00
-
1,156,17
7,000.00
-
808,553,
000.00
Dividends Paid
-
143,353,
000.00
-
166,172,
000.00
-
303,886,
000.00
-
234,697,
000.00
-
272,403,
000.00
-
305,666,
000.00
Other Financing
Cashflows
-
36,114,0
00.00
-
32,926,0
00.00
-
71,070,0
00.00
-
122,546,
000.00
-
6,417,00
0.00
-
131,356,
000.00
Net Financing
Cashflows
-
18,438,0
00.00
-
127,742,
000.00
512,958,
000.00
-
156,848,
000.00
-
371,481,
000.00
-
14,934,0
00.00
Net Increase in Cash
90,587,0
00.00
-
108,146,
000.00
144,124,
000.00
12,659,0
00.00
87,195,0
00.00
347,875,
000.00
Cash at Beginning of
Period
173,418,
000.00
272,251,
000.00
167,885,
000.00
315,861,
000.00
328,989,
000.00
419,519,
000.00
Exchange Rate Adj
8,246,00
0.00
3,125,00
0.00
3,852,00
0.00
469,000.
00
3,335,00
0.00
3,172,00
0.00
FUNDAMENTAL OF VALUE CREATION
Purchase of PPE
265,574,
000.00
245,664,
000.00
486,172,
000.00
510,264,
000.00
430,455,
000.00
473,841,
000.00
Proceeds From Sale
of PPE
11,013,0
00.00
1,414,00
0.00
27,157,0
00.00
4,737,00
0.00 0.00 0.00
Investments
Purchased 0.00
-
72,425,0
00.00
-
14,876,0
00.00
-
23,298,0
00.00
-
29,874,0
00.00
-
5,250,00
0.00
Proceeds From Sale
of Investments 0.00 0.00 0.00 0.00 0.00 0.00
Payments for
Purchase of
Subsidiaries
-
91,080,0
00.00
-
227,294,
000.00
-
646,468,
000.00
-
213,718,
000.00
-
24,698,0
00.00
-
170,647,
000.00
Proceeds from Sale
of Subsidiaries 0.00 0.00 0.00 0.00 0.00
13,239,0
00.00
Loans Granted 0.00 0.00 0.00 0.00 0.00 0.00
Loans Repaid 0.00 0.00 0.00 0.00 0.00 0.00
Other Investing
Cashflows
4,257,00
0.00
2,053,00
0.00
5,290,00
0.00
7,081,00
0.00
61,516,0
00.00
4,621,00
0.00
Net Investing
Cashflows
-
341,384,
000.00
-
541,916,
000.00
-
1,115,06
9,000.00
-
735,462,
000.00
-
423,511,
000.00
-
631,878,
000.00
Proceeds from
Issues 0.00
39,027,0
00.00 0.00 0.00 0.00 0.00
Proceeds from
Borrowings
632,897,
000.00
52,895,0
00.00
1,360,47
3,000.00
866,710,
000.00
1,063,51
6,000.00
1,230,64
1,000.00
Repayment of
Borrowings
-
471,868,
000.00
-
20,566,0
00.00
-
472,559,
000.00
-
666,315,
000.00
-
1,156,17
7,000.00
-
808,553,
000.00
Dividends Paid
-
143,353,
000.00
-
166,172,
000.00
-
303,886,
000.00
-
234,697,
000.00
-
272,403,
000.00
-
305,666,
000.00
Other Financing
Cashflows
-
36,114,0
00.00
-
32,926,0
00.00
-
71,070,0
00.00
-
122,546,
000.00
-
6,417,00
0.00
-
131,356,
000.00
Net Financing
Cashflows
-
18,438,0
00.00
-
127,742,
000.00
512,958,
000.00
-
156,848,
000.00
-
371,481,
000.00
-
14,934,0
00.00
Net Increase in Cash
90,587,0
00.00
-
108,146,
000.00
144,124,
000.00
12,659,0
00.00
87,195,0
00.00
347,875,
000.00
Cash at Beginning of
Period
173,418,
000.00
272,251,
000.00
167,885,
000.00
315,861,
000.00
328,989,
000.00
419,519,
000.00
Exchange Rate Adj
8,246,00
0.00
3,125,00
0.00
3,852,00
0.00
469,000.
00
3,335,00
0.00
3,172,00
0.00
30
FUNDAMENTAL OF VALUE CREATION
Other Cash
Adjustments 0.00 0.00 0.00 0.00 0.00 0.00
Cash at End of
Period
272,251,
000.00
167,230,
000.00
315,861,
000.00
328,989,
000.00
419,519,
000.00
770,566,
000.00
FUNDAMENTAL OF VALUE CREATION
Other Cash
Adjustments 0.00 0.00 0.00 0.00 0.00 0.00
Cash at End of
Period
272,251,
000.00
167,230,
000.00
315,861,
000.00
328,989,
000.00
419,519,
000.00
770,566,
000.00
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