| HCM 385 | Jamea Kemple-Calambas | | A Financial Analysis of a Publicly Traded Health Care Company | | In this paper, I will use financial data and research of a publicly traded healthcare company to give an analysis of the selected company’s financial status. | The company I selected to analyze is a Biotech and a Cell Therapy healthcare company aptly named NeoStem, inc.. A History of NeoStem On January 19, 2011, NeoStem acquired Progenitor Cell Therapy, a cell therapy contract manufacturing company serving the industry from licensed, state-of-the art facilities in New Jersey and California. This event added to NeoStem over 100 years of collective experience in the business and science of cell therapy and its …show more content…
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: [FAIL] Companies must demonstrate both revenue and net income growth of at least 25% as compared to the prior year. These growth rates give you the dynamic companies that you are looking for. These rates for NBS (-14.29% for EPS, and 103.21% for Sales) are not good enough to pass. INSIDER HOLDINGS: [PASS] NBS's insiders should own at least 10% (they own 16.35% ) of the company's outstanding shares which is the minimum required. A high percentage typically indicates that the insiders are confident that the company will do well. CASH FLOW FROM OPERATIONS: [FAIL] A positive cash flow is typically used for internal expansion, acquisitions, dividend payments, etc. A company that generates rather than consumes cash is in much better shape to fund such activities on their own, rather than needing to borrow funds to do so. NBS's free cash flow of $-0.49 per share fails this test. PROFIT MARGIN CONSISTENCY: [FAIL] The profit margin in the past must be consistently increasing. The profit margin of NBS has been inconsistent in the past three years (Current year: -63.93%, Last year: -33.39%, Two years ago: -226.38%), which is unacceptable. This inconsistency will carryover directly to the company's bottom line, or earnings per share. R&D AS A PERCENTAGE OF SALES: [NEUTRAL] This criterion is not critically important for companies that are not high-tech or medical stocks because they
• Net profit margin has been negative and no major patterns over the 9 year period on net profit since the trend of the industry is based mostly on economic factors, and whether or not they secure contracts. Due to high percentage of COGS they are only left with a net profit of $980 or
Net Margin is the ratio of net profits to revenues of a company. It is used as an indicator of a company’s ability to control its costs and how much profit it makes for every dollar of revenue it generates. Net Margin is calculated using the formula: Net Margin = (Net Profit / Revenues ) * 100 Net margins vary from company to company with individual industries having typically expected ranges given similar constraints within the industry. For example, a retail company might be expected to have low net margins while a technology company could generate margins of 15-20% or more. Companies that increase their net margins over time generally see their share price rise over time as well as the company is increasing the rate at which it turns dollars earned into profits.
Another option for NCB is to start its own distribution company. This option will require a significant capital investment in addition to the losses due to Harrison’s bankruptcy. If we look at the balance sheet of Harrison we can see that Net PP&E + Land amounted to $ 3,295,000. If NCB will decide to take this option, it must invest a similar amount. In addition, inventory investment is required and will be at minimum $ 500,000.
In the case of Assessing a Company’s Future Financial Health, the case concentration is on SciTronics, a medical device company, performance measures based on the organization’s three primary financial data sources in Exhibit 1 & 2. Utilizing the 9 steps of corporate financial system, I will be able to analyze the financial health of the company to assess whether it will remain balance over the ensuing 3-5 years. The measures are grouped by focusing on “Financial Ratios” such as: 1.) profitability measures, 2) activity measures, and 3) leverage and liquidity measures. Using the financial data sources, I would be able to make recommendations regarding SciTronics 126 million loan request.
Palomar Health is one of the largest health care districts located in California around San Diego Counties. Palomar Health operates three hospitals, in addition to home health care, surgery, skilled nursing, ambulatory care, behavioral health services, wound care, and community health education programs. This paper will analyze Palomar Health’s financial statement from fiscal years following 2012 to 2015. An in dept analysis of the Consolidated Statement of revenue, expenses, and changes in net position will be examined to better understand the organizations standings of their financial outcomes for those following years (McIntosh L. 2015).
The major difference between healthcare finance terminology and business finance terminology is that these terms focus on factors unique to the health services industry. For example, the provision of health services is dominated by not-for-profit or¬ganizations (such as ours), which are inherently different from investor-owned businesses. Also, the majority of payments made to health¬care providers for services are not made by patients—the consumers of the services—but rather by some third-party payer (e.g., a commercial insurance company or a government program). Even the purchase of health insurance is dominated by employers rather than by the individuals who receive the services. These terms emphasize ways in which the unique features of the health services industry affect financial decisions. The healthcare industry is a service industry. It is not in the business of manufacturing, say, widgets. Instead its essential business is the delivery of healthcare services. It may have inventories of medical supplies and drugs, but those inventories are necessary to service delivery, not to manufacturing functions. Because the business of healthcare is a service, this overview of key healthcare terminology will focus on the practice of financial management in the services industry.
In terms of industry profitability, it appears that profit margins have a tendency to fall. This is because competition is high and customers tend to buy low-priced high-value items. The average gross margin and net profit margin is 37.1% and 14.3%, respectively (MSN Money, 2010).
Understanding the financial analysis of healthcare organizations is strategic to the organization by understanding their stand on the amount of revenue they gain, healthcare assets, and their financial goals. This paper will provide a comparison on the performance of financial analysis of several California Healthcare Organizations such as; Scripps Health, Palomar Health, Sharp Healthcare, and Tri-City Healthcare. The four healthcare organizations will be illustrated with an overview about what the organizations have been doing financially , where they have been growing financially, and what have they accomplished over the past year from examining their financial statement. As the nation’s healthcare model continues to evolve,
Review of Financial Research Report: This assignment is an analysis of a US publicly-traded company; its common stock could be a prospective investment. The report is due in Week 10, in needs to be at least 5 pages, and it needs to cover the following topics:
EXECUTIVE SUMMARYSilicon Valley Medical Technologies (SIVMED) was founded as a research and development firm. In the beginning, SIVMED performed its own basic research, obtained patents on promising technologies, and then either sold or licensed the technologies to other firms which marketed the products. The firm has since then grown and is now contracted to perform research and testing for larger genetic engineering firms, biotechnology firms, the US government, and is now widely recognized as the leader in an emerging growth industry. SIVMED's founders were relatively wealthy individuals when they started company, and they committed a great deal of their own funds to the venture. Their personal funds, however, were soon exhausted by the
Financial data from past periods of a company, provides a perspective for future outcomes. Investors give proper attention to different ratios. In this report I am analyzing the financial position and financial performance of AT & T, a US. Telecommunication Company. The objective and conclusion of this analysis will be, if is either good or not to invest in the company.
| The company generates 8.83 cents in net income for every $1 sales, quite good for a low profit margin business.
The aim of this report is to recommend whether or not a publicly traded company has been is worth investing in. The company chosen in this case is JPMorgan & Chase which is a large financial institution. This report is going to use a financial rational formed by the analysis of various financial metrics.
The health care industry is diversely complex. The health care industry is a set of connections between people and technology; physicians, pharmacies, medical clinics, health insurance, hospitals, school health programs, and voluntary health agencies all make up a huge, diverse system. Within the stock market, the health care industry is very prominent, however, its stability is weighed; many different variables determine the stability or instability of health care markets. Many take into consideration the determinants that affect health care, when investing in this sector, while many others don 't fully acknowledge how these variables affect the health care industry. Variables like the cost of health care, access, and the quality of health care play an important role in whether investing in health care or not, and determines the financial numbers of many health care providers and health care biotech providers, as well. For example, if the quality of health care in a hospice facility is very high, they must be acquiring very high-quality technology and equipment, resulting, in majority of the cases, in high-price cost of services, resulting in a negative variable for the biotech provider and manufacturer because not many people want to pay a high service, and may not pay for the cost of equipment. This is an example of how variables, such as the ones already mentioned, can affect the health care sector and health care investors.
The Net Profit Margin in 2012 was 10.5% while in 2013 it was 66.6%. This increase in the Net Profit Margin can be attributed to the increase in net profits after taxes despite the fact that there was a slight decrease in revenues.