...CHESAPEAKE HEALTH PLANS Financial and Operating Performance Analysis Report September 18, 2015 Executive Summary Chesapeake Health Plans is an insurance company that offers prepaid health coverage to more than 400,000 members. It is Virginia’s largest managed care organization, offering various products including HMOs, PPOs, and POS plans as well as Medicare HMOs. Moreover, Chesapeake was the first HMO in Virginia to receive accreditation from the National Committee for Quality Assurance (NCQA), and gained excellent levels in each of its component plans. A comprehensive financial and operating performance analysis was performed for Chesapeake Health Plans. The purpose of this analysis was to gain insight into the financial and operational workings of the organization and to identify any potential operating, investing, and financing issues that can be addressed to improve the organization’s financial health. To achieve this goal, the following key performance indicators were examined: market comparison, ratio analysis, cash flow analysis, Dupont Analysis, and operating indicator analysis. Furthermore, recommendation were provided to improve areas of concern and to ensure future financial stability. Market Comparison Chesapeake has four primary competitors with varying number of service areas, enrollment, and subsequent total assets. The competitors are WellLife, Sparta, Signet Healthcare and Proxima. Chesapeake does not serve as many counties as WellLife and...
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...Financial Condition Analysis Chapter 17 ANSWERS TO END-OF-CHAPTER QUESTIONS 17.1 a. Financial statement analysis, which focuses on the data contained in a business’s financial statements, is designed to assess the financial condition of the business. Operating indicator analysis, which focuses on operating (as opposed to financial) variables, attempts to identify the underlying operating parameters that contributed to the assessed financial condition. b. Of course, it is extremely important to understand a business’s financial condition, because any future plans must be supported financially. However, it is equally important, especially for managers, to understand what operational actions are required to ensure that the business maintains the financial condition needed to accomplish its mission. 17.2 Analyses that examine historical data provide managers and investors with an appreciation of the business’s current condition, which is important. However, the future is more important than the past, and the most important use of a historical analysis is as a springboard for preparing for the future. When plans are being made, pro forma (forecasted) financial statements are prepared and analyzed, so that managers can gain insights regarding the impact of alternative strategies on the business’s financial and operating condition. 17.3 The inventory turnover ratio indicates how well a business is utilizing its inventories. It tells managers how many dollars of sales...
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...acquisition, disposal and management of its capital assets, Iike facilities, its land and shore infrastructure. The military readiness, effectiveness, and responsiveness of the Navy depend on the availability and condition of its assets. The goal of the Shore Facilities Planning Process is to achieve mission readiness. The Shore Facility Planning Process is a critical part of the Navy's process of maintaining land and shore facilities. It precedes the facility programming, budgeting, funding and implementation phases necessary for prudent management of Navy's facilities. It is a process that analyzes existing facilities and their conditions; the facilities needed to perform assigned mission; existing facilities use; and how to achieve efficient facility utilization, thus minimizing facility footprint. It is a tool used to develop and implement site-specific solution necessary to successfully acquire, maintain, optimally utilize, and dispose of shore assets. It allows planners to locate surplus facilities that may be appropriate to help satisfy other identified facility deficiencies, in order to enhance efficient utilization of existing assets and to improve mission capability. The first slide shows how the Shore Facility Planning System fits into the Navy's broader planning and asset management efforts. The SFPS process consists of five principal steps or phases: 1. Facilities requirements (BFR) 2. Asset evaluation 3. Analysis, Concepts and Proposal 4. Implementation (INFADS) ...
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...Beximco Pharmaceuticals Ltd. (Ratio Analysis) 2009-2010 The overall purpose of financial statement analysis is to known a company’s performance to that of other in its industry. Financial ratio should be examined relative to the economy the companies industry, the companies’ main competitor and the companies past relative ratios. The specific ratios can be divided into 4 categories, depending on the purpose of the analysis: A. Profitability Ratios. B. Asset Utilization Ratios. C. Liquidity Ratios. D. Debt Utilization Ratios. E. Market Value Ratios. A. Profitability Ratios Net Income (i) Profit Margin = ------------------- X 100 Sales 1051648808 In the year 2010, The Profit Margin = ------------------- X 100 = 16.20% 6490847353 624740307 In the year 2009, The Profit Margin = ------------------ X 100 = 12.83% 4868254915 Analysis : Here, 2010 Annual year profit margin is higher than 2009 Annual year indicating that 2009 Annual year sales are too low. According to debt ratio 2009 year has a great proportion of debt than the 2010 year & the times interest earned ratio shows the 2009 year interest payments on its debt are not covered as well as the rest of 2010 Annual year. This is one of the reason that 2009 annual year profit margin...
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...relationship of debt to total assets. They also will examine profitability to insure that interest payments can be made. Shareholders - profitability, with secondary consideration given to debt utilization, liquidity, and other ratios. Since shareholders are the ultimate owners of the firm, they are primarily concerned with profits or the return on their investment. 2. a. Return on investment = Net income Total assets Inflation may cause net income to be overstated and total assets to be understated. Too high a ratio could be reported. b. Inventory turnover = Sales or COGS Inventory Inflation may cause sales to be overstated. If the firm uses FIFO accounting, inventory will also reflect "inflation-influenced" dollars and the net effect will be nil. If the firm uses LIFO accounting, inventory will be stated in old dollars and too high a ratio could be reported. c. Capital asset turnover = Sales . Capital assets Capital assets will be understated relative to sales and too high a ratio could be reported. d. Debt to total assets = Total debt . Total assets Since both are based on historical costs, no major inflationary impact will take place in the ratio. Assets are likely understated, however, causing ratio to be overstated. 3. The Du Pont system of analysis breaks out the return on assets between the profit margin and asset turnover. ROA = Profit...
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...belongs; 3. Those used by the firm’s successful competitors; 4. Those used by the firm using prior periods; and 5. Those used by the analyst in the past. Industry ratios are averages developed by a group of expert involved in research. These empirically-based ratios are used as standards in financial statement analysis. Industries have their own peculiarities hence, experts developed ratios that are suitable for that industry. Since this task is too tedious, analysts resort to using ratios of competitors, which are readily available. There should be consistency in the computation as well as usage of ratios to ensure comparability between results and present their misinterpretations. Just like any financial analysis technique, financial ratios are subject to limitations. Results from financial ratio analysis are understandable since the ratios spring forth from financial statements, which as we have mentioned, are subject to limitations. PLMun Corporation Comparative Statements of Financial Position December 31, 2015 and 2014 PLMun Corporation Comparative Statements of Financial Position For the period ending December 31, 2015 and 2014 In doing the analysis we shall cover the company status in terms of: 1. Liquidity – Pertains to the firm’s ability to pay any immediate and...
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...(January 1, 2012 – February 29, 2012) MARCH 1, 2012 RELOCATION DEADLINE 3 Overview of Public-Private Partnership (PPP) • New ESC will cost $387MM • Financing will require public-private partnership – PRIVATE PARTICIPATION • Kings as anchor occupant • Third party investors in operator and/or developer roles – PUBLIC PARTICIPATION • ESC will be public asset owned by taxpayers • Multiple revenue streams required 4 Guiding Principles in Developing PPP • Protect taxpayers • Learn from best practices in comparable markets • Maximize private investment by creating viable economic model • Ensure return on public investment in form of jobs and economic activity • Focus on public revenues created or enhanced by ESC that would not otherwise exist 5 Conceptual Model for PPP Public-Private Partnership Public Private New revenues created directly by ESC Revenues from assets enhanced by ESC Other revenues Anchor Tenant lease payment Third Party Investment Other private participation FOCUS FOR TODAY 6 Public Assets with Potential ESC Synergies Parking Billboards • Asset value increases because of the ESC • May not otherwise be available if no ESC constructed • Do not increase costs to the public or...
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...Table of Contents Executive Summary 2 Profitability Ratios 3 Profit Margin 3 Return on Assets 3 Return on Equity 3 Asset Utilization Ratios 3 Receivables Turnover 3 Average Collection Period 3 Inventory Turnover 3 Capital Asset Turnover 3 Total Asset Turnover 3 Liquidity Ratios 4 Current Ratio 4 Quick Ratio 4 Debt Utilization Ratios 4 Debt to Total Assets 4 Times Interest Earned 4 Conclusion and Recommendations 5 Appendix I: Ratios Analysis Results 6 Executive Summary The purpose of the report is to provide Wand Inc. a recommendation from the following choices: - 1. Grant short-term credit to Lululemon Athletica Inc. 2. Grant long-term credit to Lululemon Athletica Inc. 3. Consider purchasing shares in Lululemon Athletica Inc. or buying shares in Nike On face value and looking at ratios in isolation, granting long term credit or investing in Lululemon looks like the best option for Wand Inc. However, further investigation on all the ratios and taking into account financial statement data, granting Lululemon short-term credit such as Notes Payables is the best viable risk tolerance option for Wand Inc. Lululemon’s liquidity ratios are growing year on year and are almost 3 times better than industry. The ratios positively favour short-term investors who prefer get their money back within a year. The report details an analysis of significant ratios split into four primary categories. Profitability Ratios which relate...
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...S.Afr.J.Bus.Manage.2011,42(3) 17 Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia H. Ibrahim* School of Management, Universiti Sains Malaysia, 11800 USM, Penang, Malaysia haslindar@usm.my F.A. Samad Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia mfazilah@um.edu.my Received June 2009 We compare corporate governance and performance between family and non-family ownership of public listed companies in Malaysia from 1999 through 2005 measured by Tobin’s Q and ROA. We also examine the governance mechanisms as a tool in monitoring agency costs based on asset utilization ratio and expense ratio as proxy for agency costs. We find that on average firm value is lower in family firms than non-family firms, while board size, independent director and duality have a significant impact on firm performance in family firms as compared to non family firms. We also find that these governance mechanisms have significant impact on agency costs for both family and non family firms. *To whom all correspondence should be addressed. Introduction The family-controlled firm or family ownership is the most common form of business organization in the world. A various stream of literature explains that family ownership is central in most countries. La Porta, Lopez-De-Silanes, and Shleifer (1999) studied the 20 largest publicly traded companies in the richest 27 countries worldwide and found most companies are...
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...Introduction In our project we have choose two companies that are engaged in cement manufacturing. They are i) Lafarge Surma Cement Ltd. and ii) Meghna Cement Mills Ltd. As per requirement, we have conducted ratio analysis and given interpretation. We chose Lafarge Cement Ltd as our main company and Meghna Cement Mills Ltd. as our benchmark company. Before telling the reasons behind this decision, we would like to give some brief information on these two companies. Brief review of Lafarge Surma Cement Ltd. Lafarge Surma Cement Ltd. (LSC) was incorporate on 11 November 1997 as a private limited company in Bangladesh under the company Act 1994 having its registered office in Dhaka. On 2003, Lafarge Surma Cement Ltd. was made into a public limited company. The company is listed in Dhaka and Chittagong stock exchange. Today, Lafarge Surma Cement Ltd has more than 11,000 shareholders having more than 58 million shares outstanding. The company contributes with some USD 50-60 million per annum worth of foreign currency savings for the country by supplying clinker to other cement producers in the market. The company also contributes BDT 1 billion per annum as govt. revenue to the national exchequer of Bangladesh. About 5,000 people depend on this company directly or indirectly for their livelihood. Brief Review of Meghna Cement Mills Ltd. Meghna Cement Mills Ltd. (MCM) was incorporate on March 1992 and started their production on January 1996. The company was listed in Dhaka...
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...Introduction 3 The inevitable push towards greater efficiency 3 The need for better IT discovery 4 Building a more comprehensive snapshot of the data center 6 Changing the parameters for IT discovery 6 How ALDM works 8 Identifying issues that hinder operational efficiency and resilience 9 Compiling affinity groups automatically 11 Identifying the best candidates for virtualization 12 Extending insights with data visualization 12 The confluence of discovery analytics and human analysis 15 Conclusion 16 For more information Introduction An intimate knowledge of IT assets and dependencies has always been imperative to mitigating the risk of data center migrations and improving the resiliency of the IT environment. But the IT discovery process can be slow, costly and prone to error. And for all their value in helping organizations determine where and how to plan a migration or improve IT resiliency, traditional asset inventories and dependency maps provide only part of the picture. With modern IT infrastructures an intricate web of interdependencies, uncovering the total IT environment, including the logical relationships between physical, virtual and cloud elements, has never been more important—or more complex. IBM’s analytics for logical dependency mapping, ALDM, reengineers the IT discovery process to provide a more complete and accurate view of the IT infrastructure. It is designed to facilitate data center migration...
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...| REGIONAL DISPARITY IN AGRICULTURAL CREDIT | | | Arvind Kumar Jha | PGDMA 1206 | | ABSTRACT The Eleventh Five year plan makes specific focus on the inclusive growth of the economy. It implies that the growth process that experienced over the years were not sufficiently inclusive of all. Although there had been substantial reduction of poverty over past few decades during the five year plans, the core content of the rural poverty remained intractable. In fact, upto Ten Five year plan envisaged balanced regional development and equality and employment. But the growth of population and urban biased industrial development have left out the backward section of population and the rural sector in general un-addressed. The agricultural credit policies and the economic reform in general aim to have positive influence on the total volume of institutional credit. However, the rural banking system in India made tremendous quantitative achievement by neglecting the qualitative aspects of the credit delivery system. The inequalities in the banking system across the regions and social classes persisted. Hence, it is mandatory to understand the regional disparity in the distribution of agricultural credit. In context to Agricultural credit, Southern Region (Rs.101659 crore) dominated the other region Northern Region (Rs.69630 crore), Central region (Rs.45988 crore) Western region (Rs.61613 crore), Eastern Region (Rs.26760 crore)and Northeastern region(Rs.2436...
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...Thomson Reuters Financial Analysis Introduction The Thomson Reuters Corporation is a leading provider of electronically delivered information and support tools to business and professional customers worldwide. Specializing in real-time financial information networks, Thomson Reuters provides analytical information and technology platforms to customers in the financial, legal, tax and accounting, healthcare and scientific sectors. A recent merger with Thomson Financial and Reuters Group PLC’s has created two divisions within the company, Markets and Professional. The Markets division consists of the former Reuters Group business combined with the financial division (Thomson Financial). The Professional division consists of Thomson’s non-financial business segments which include Legal, Tax and Accounting, Scientific and Healthcare (Google, 2008). History Roy Herbert Thomson founded Thomson Corporation in 1934 in Ontario as the publisher of The Timmons Press. In 1953, Thomson acquired The Scotsman newspaper and moved to Scotland the following year. By the end of the 1950s, Thomson had grown from a single Canadian newspaper into a worldwide media concentration. It held several well-known newspapers in the United Kingdom, including The Sunday Times and The Scotsman, and it owned Scottish Television (ThomsonRueters.com, 2008) . In the 1960s, Thomson's publishing dominion expanded to include Thomson Publication (UK) and the famous Times of London. In 1965, Thomson Newspapers, Ltd...
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...FINANCIAL ANALYSIS DESCON CHEMICALS ANNUAL YEARS 2013, 2011, 2012, 2010 LIQUIDITY In 2010 the company had an ability to pay off short term securities by 0.95% then in 2011 the companies had to pay off by 0.89% in 2012 the company was in a better position and the pay off rate increased to 1.13 %. In 2013 the rate decreased to 1.08% creating a situation of slower processing of payments. In 2010 by using cash and a/c receivable sources company was able to payback at 0.43% in 2011 the rate was 0.44% 2012 was the year in which 0.5% payables were managed by the company but in 2013 this rate went down again to 0.4%. The company seems to have a delay in meeting their payables as they are very far from the best payable % (i.e. 2-3%) EFFICIENCY In 2010 the company was utilizing its assets at 1.19 times we can see an increasing trend in this case where in 2011 the utilization goes up to 1.38 times in 2012 it goes up at 1.53 times and with a minor increase of 0.1% in 2013 it goes at 1.54 times. Apart from the turnover from overall assets we can see that the use of plant property and equipment has a decreasing trend from 2010 to 2013 in 2010 the rate of benefit was 1% but it dropped to 0.86% by 2013 which tells that other assets gave more and the plant property and equipment gave less benefit. Where as the capital employed for 2010 gave a return of 18% in 2011 the return was of 30% that was way too efficient but unfortunately in 2012 the return rate dropped to 17% and in 2013...
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...five ratio categories: Liquidity, Asset Utilization, Profitability, Debt Utilization, and Market Values, write a paragraph regarding the trend and implications about the future financial health of the company. Liquidity: The company has very strong ratios helping the company to do well. Dell’s current ratio and quick ratio are at 1.47 and 1.40 respectably, this similarity between one and the other is a reflection of their very low inventory compared to the amount of sales that the company has, also influencing the net working capital ratio of only 0.23. At first sight the current liabilities to inventory ratio of 15 might seem a bit high, although the denominator of the current liability to inventory ratio is inventory and it is really low. It’s really hard to compare the company to the industry average because there is no other company that handles its inventory like Dell does. The company’s operation ratio expense is 12.64, way below compare to their industry do to their very low inventory. Assets Utilization: Asset utilization is vital to the success of an organization, the way assets are used within the organization is their biggest and strongest strategy making Dell a leader in its industry. A reflection of this strategy is their impressive inventory turnover ratio of 45.45. Unlike the industry average low numbers on the rest of the asset utilization ratios such as fixed assets turnover, total assets ratio and asset to equity ratio, Dell’s average 50%...
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