Chat with us, powered by LiveChat Please revise the paper attached according to the feedback given below. Also, the instructions and the completed paper are attached. You wrote in your paper | WriteDen

Please revise the paper attached according to the feedback given below. Also, the instructions and the completed paper are attached. You wrote in your paper

 

Please revise the paper attached according to the feedback given below. Also, the instructions and the completed paper are attached.

You wrote in your paper " The competitive analysis emphasizes direct rivals who offer almost similar functionality; comparative analysis, on the other hand, considers both active and passive competitors, especially competitors that only offer a tiny percentage of your features. Comparative analysis has the benefit of allocating the user to incorporate a broad range of rivals and collect more detailed data than competitive analysis. (Peltier, 2017) Comparative analysis is the practice of contrasting and contrasting objects. When a company wants to investigate a concept, a problem, a hypothesis, or a concern, it may utilize a comparative analysis to capture a greater understanding of the situation and develop methods to address it. (Peltier, 2017)This sort of study might be utilized by a business that analyzes things with evident distinctions or items with both differences and commonalities. Healthcare companies might use this research to distinguish two distinct types of drugs, for example. Other firms could do a comparative analysis to see which of the two manufacturing methods is the most efficient. A competitive analysis is an approach that involves studying main rivals' products, revenues, as well as product promotion. Conducting a competitive market study has several advantages, including strengthening corporate strategy, warding off rivals, and grabbing market share. (Peltier, 2017) There is a need to maintain market price share. The increase in the book value shows that the company is in a successful condition in the market. The increase in the book value indicates that investors have positive tensions about investment in the company's share.

PEG ANALYSIS FOR THE YEARS 2019AND 2018

ABC

Price per share : $83.62

EPS this year : $1

EPS last year : $1

HCA

Price per share : $199.34

EPS this year : $21.16

EPS last year : $21.18

Given this information,

ABC

P/E ratio :83.62/ 1= 83.62

Earnings growth rate : 1/1 = 1%

PEG ratio : 83.62/ 1 = 1:83.62

FEEDBACK : As far as the comparative analysis for ABC and HCA. You had to evaluate the provided financial statements of the firm to find its true condition and valuation, supporting the evaluation with details and examples to illustrate the strengths and weaknesses. In other words, you have to do a specific comparison of all of ABC's financial ratios with HCA's financial ratios, i.e PE, PB, BVPS. EPS, PEG and stock market price order to determine the financial strengths and weaknesses of each firm. Your analysis has to be more detailed and specific.

Here is a link to check historical price to book value and other financial ratios. HCA Healthcare Price to Book Ratio 2006-2021 | HCA | MacroTrends.

Please review the significance of negative PB values in comparison to ABC/s PB values. In addition, what is the significance of a negative tangible net worth? Also please calculate the PEG ratio for both ABC and HCA and provide the requested comparison. FYI, your caluculations for ABC's PEG ratio is incorrect and you did not provide a comparison.

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ABC Healthcare Corporation

Executive summary

ABC healthcare give facilities for ambulatory surgery, outpatient clinics, hospitals, and also urgent care centers. Maria Gomez is acting as the founder as well as the president of the healthcare facility. All above-mentioned facilities are treated as a single entity in the finance department. All the data of financials of the firm are treated in their own financial statements, and after that, this financial statement helps in preparing a consolidated account in the future. The revenue of the firm is mostly generated from the general public, which relates to its business. ABC Healthcare is one of the leading healthcare service providers in the country when it comes to providing home medical equipment. The organization specializes in rehabilitation, medical, and respiratory treatments, and it serves a large number of individuals. As recorded in the annual report of 2019, financial ratios show that investors were ready to pay $12 for the return of $1 on this investment. When compared to the financial year 2019, the price-to-profits ratio was lower than in previous years. As below, it is clearly mentioned that there has been no change in the market price of the shares of the company in the last three years; however, the profit per share declined in the last three years. If we talk about the price/earnings ratio, it shows an increasing trend over the last three years. A positive trend in the financial ratio shows that investors are happy and want to purchase more additional shares in the company. They are happy to obtain more operations in the company and want to spend excess control.

Company Background

The healthcare company ABC Healthcare Corporation is a market leader. Elwood James Miller, a respiratory therapist, established the ABC healthcare business organization in 1983. Elwood began his healthcare business in his carport and grew it into a reputable provider of services, reliability, and compassion. The ABC healthcare organization is now Virginia's biggest accredited supplier of clinical respiratory treatments as well as personal medical equipment. This is true throughout the sector, and ABC Healthcare Corporation works hard to fulfill the demands of its patients, workers, as well as insurance partners. The company is a public limited in the healthcare industry, and it is listed on the stock exchange. There are 2000 total employees in the company hired in it. Casual employees are part of this number of employees with 20% of the total workers. As written in the annual report, when we see the financial data for the last five years, we can clearly see that it indicates that the company management put its efforts into boosting the profit of the company. Its revenue increase year by year. In addition, the financial part shows the increasing trend in the wealth of stakeholders. In the healthcare sector, Healthcare Corporation is a market leader. ABC health care provides facilities related to ambulatory surgery, hospital, urgent health care, and also the outpatient clinic. There are a lot of medical intuitions which related to the company and provide healthcare services to the customers. There is various type of services for the customers because the company considers the customers as the most important stakeholders of it.

This is true throughout the sector, and ABC Healthcare Corporation works hard to fulfill the demands of its patients, workers, and insurance partners. The overall goal and motive of this report are not only to examine the company's financial situation but also to give suggestions for maximizing shareholder value. In the case of ABC Healthcare Corporation, this will have an impact not just on direct investors but also on the company's patients. The financial data related to the CFO of the company will be under consideration for determining the economic history of the company. Three suggestions will be made once this data has been analyzed to optimize shareholder value.

Overall Financial Analysis

Companies use financial analysis to assess the economic trends, formulate financial policies, develop the company's long-term goals, and find the potential investment projects. (Witzel, 2012) These all things are possible only when we combine financial data with numbers. As a financial analyst, a person reviews all the accounting accounts. The financial analysis would be performed in both financial and corporate environments. The main discussion of the report is financial reporting. Balance scorecards are used for the estimation of whole healthcare performance. The company's ratio analysis shows the past three years' performance. As we can see, the market price of the share of the company over the last three years has been the same. From 2017 to 2019, the market price is $83.62, and there has been no change in it. The book ratio per share increased from 2017 to 2019. Price-to-earnings ratio increased in 2019 as compared to 2017 and 2018, which means that in the current year, investors need to pay more as compared to the past 2 years. However, it is paramount to note that although the overall market price has remained at a constant $83.62, the earnings per share have decreased with each new year. This may be directly due to an array of reasons. Firstly, the stability of financial markets is highly influenced by the conditions in which an organization operates (Jorion, 1991). Healthcare is one industry that can be ascertained as quite stable, individuals are constantly looking for medical attention, and with the global trends toward healthy lifestyles, healthcare is a top-tier need (Michael & Richardson, 2008). The stability of the industry is, therefore, the main reason why the market stock market price has remained stable.

To address the decreases in earnings per share, one could look at the ever-increasing prices of healthcare. Healthcare has been identified as quite expensive and financially unreachable for most of the global population. This increase in healthcare prices means that there are fewer returns for the shareholders as the organization experiences more expenses. Secondly, healthcare has become highly regulated by governments so as to make it accessible (Michael & Richardson, 2008). This means that healthcare organizations such as ABC can not constantly increase the prices of their services. This also affects the amount of profit that ABC can make, ultimately affecting the returns for each shareholder.

Financial Ratio Analysis

Ratio analysis is critical for a company's financial situation, liquidity, profitability, risk, solvency, efficiency, operational effectiveness, and lastly, the correct use of money. (AREAS, 2018)It also reveals the overall comparison as well as the trend of financial outcomes, which are very significant for the shareholders to make the appropriate investment decisions as the financials of the company show that the market price of the company has been the same for the last three years, which is 83.62 dollars. This consistency in the market price shows that investors of the company maintain the profitability of the shares within the market. There are the demand and supply forces here which indicate that when demand increase, then the price of the products also increases, which in result decline in the supply and vice versa.

Equilibrium is defined as the value of a company's share being constant throughout time. Stock details of the company show that when the public purchases the shares of the company in bulk, then it increases the net worth of the company. This is all due to giving the extra incentives to its shareholders that they can pay the same cost for the added amount of shares. Inflation plays a major role in decreasing the stock's share price, as the company's share price is 83.62 today, but it doesn't mean it will be the same in the future. The book ratio of the business has jumped in the last three years. The price at which the stock trade in the market is the market price, and these stocks are recorded in the financial statement at par value. (Pride et al., 2020) The par value of the stocks is usually less than its market price. (Pride et al., 2020) As we can see, the book value of the shares increased over the last three years, and it shows an increasing trend. As a result of changes in the company's net assets and ownership, this has occurred. When we divide the net assets of the company by its outstanding shares, then we get the book value of the share. When the book value per share rises, it signifies the company's net assets have grown at a faster rate than the shareholding. (Tracy, 2012) This is a good sign that the firm can create more income without relying on shareholder funds to invest in more assets. The reason behind the increases in PE and PB but a decrease in EPS can be linked to the technological advancements in the health care sector. ABC has probably acquired the latest machinery and medications. This has ultimately increased the net assets, positively affecting the worth of the organization (Jorion, 1991). However, the earnings per share may be declining as a result of these technological advancements. Profit is going into ensuring the organization is relevant and has the best equipment but reducing the earnings of the shareholders.

Lastly, the Book Value Per Share will be analyzed. It is evident that between 2017 and 2019, it has decreased to a total value of 26.9. Although the decrease is quite noticeable, it is not entirely concerning as it is likely a result of ABC increasing its profitability and growth through the acquisition of new technology (Jorion, 1991).

Trend Analysis

Trend analysis is a sort of basic analysis approach that aims to forecast future stock price movements by utilizing the trend data that has recently been seen. (Thomsett, 2019) In order to evaluate the long-term direction of market sentiment, trend analysis in this regard by looking at the past data, which includes price fluctuations as well as transaction volume. (Thomsett, 2019). Trend analysis seeks to forecast a trend, such as a stock market run, and ride it until evidence shows a loss of momentum, including a bull-to-bear market. Trend analysis is considered very useful because it provides the real aspects of the trend to investors, and the investor will therefore earn on investment by following rather than fighting them. It is founded on the assumption that the investors can better anticipate the future prospects of the future happenings by examining what has actually occurred. (Gil-Lafuente, 2005)Short-term, intermediate-term, as well as long-term trends are really the three main categories. The increasing trend in the book value of the shares reveals that the company's shares have a growth rate in fast position than its shareholder's value. A company's management can earn more without relay on the shareholders. Management can earn profit by efficient operations as the financials shows that the market to book price increased from the past 3 years to now because the market price has considered the market value. The company gives incentives to its public shareholders and expands its net worth of the company.

Competitive Comparative Analysis

The competitive analysis emphasizes direct rivals who offer almost similar functionality; comparative analysis, on the other hand, considers both active and passive competitors, especially competitors that only offer a tiny percentage of your features. Comparative analysis has the benefit of allocating the user to incorporate a broad range of rivals and collect more detailed data than competitive analysis. (Peltier, 2017) Comparative analysis is the practice of contrasting and contrasting objects. When a company wants to investigate a concept, a problem, a hypothesis, or a concern, it may utilize a comparative analysis to capture a greater understanding of the situation and develop methods to address it. (Peltier, 2017)This sort of study might be utilized by a business that analyzes things with evident distinctions or items with both differences and commonalities. Healthcare companies might use this research to distinguish two distinct types of drugs, for example. Other firms could do a comparative analysis to see which of the two manufacturing methods is the most efficient. A competitive analysis is an approach that involves studying main rivals' products, revenues, as well as product promotion. Conducting a competitive market study has several advantages, including strengthening corporate strategy, warding off rivals, and grabbing market share. (Peltier, 2017) There is a need to maintain market price share. The increase in the book value shows that the company is in a successful condition in the market. The increase in the book value indicates that investors have positive tensions about investment in the company's share.

PEG ANALYSIS FOR THE YEARS 2019AND 2018

ABC

Price per share : $83.62

EPS this year : $1

EPS last year : $1

HCA

Price per share : $199.34

EPS this year : $21.16

EPS last year : $21.18

Given this information,

ABC

P/E ratio :83.62/ 1= 83.62

Earnings growth rate : 1/1 = 1%

PEG ratio : 83.62/ 1 = 1:83.62

HCA

P/E ratio : 199.34/ 21.16 = 9.42

Earnings growth rate : 21.16/21.18 = 0.99

PEG ratio : 9.42/0.99= 9.51

Recommendations

It is recommended that the company needs to be more focusing and also work hard. The company also requires a comprehensive expansion in its operations. By expanding operations, the company will be able to maintain an increasing trend in the book value per share. An increasing trend in the book value will create more value and overall expansion for the company in the market.

Different steps can be used to achieve higher shareholder value. Firstly, ABC is encouraged to increase its stock market price. Increasing the stock market price gives the impression that the organization is of high value and is a worthy investment. It also brings about a sense of confidence in the financial standing of the organization (Blyth, Friskey & Rappaport, 1986). When the stock market price heightens, the shareholders get more return as a result of increased prices as the EPS also increases.

Secondly, ABC is encouraged to ensure that its expected value is constantly being increased. This can be through the acquisition of any form of assets that will increase the organization's value. ABC is in the healthcare sector, and it would be important for them to keep up with the latest healthcare advancements increasing the BVPS (Rappaport, 2006). Although they would be currently costly, in the long run, they would ensure ABC is a market leader in its industry as

The third way that ABC could use to maximize shareholder value would be to reduce the number of shareholders (Rappaport, 2006). By acquiring their shares back, they reduce the amount of outstanding stock. This would mean that the remaining shareholders see an increase in their EPS.

Conclusion

Ambulatory surgery, outpatient clinics, hospitals, and urgent care centers are all services provided by ABC Healthcare. Maria Gomez is acting as the founder as well as the president of the healthcare facility. In the finance department, all of the foregoing facilities are handled as a single entity. All of the firm's financial data is treated in its own financial statements, and this financial statement then aids in the preparation of a consolidated account in the future. The company's revenue is primarily derived from its business dealings with the general population. It indicates that investors are more concerned about investing in the company, as well as the value of the company in the market is high. In addition to the analytical findings, it is evident that ABC may have to take some drastic steps so as to ensure that its shareholders are happy. Short-term discomfort and negativity will ultimately benefit ABC. This would be advisable by reducing the outstanding stock, reselling the stock again at a higher value, and limiting the number of shareholders so as to not have the profits spread too thin (Rappaport, 2006).

REFERENCE

AREAS, B. (2018). Financial analysis. growth30, 10.

Blyth, M.L. , Friskey, E.A. and Rappaport, A. (1986), "IMPLEMENTING THE SHAREHOLDER VALUE APPROACH", Journal of Business Strategy , Vol. 6 No. 3, pp. 48-58. https://doi.org/10.1108/eb039119

Gil-Lafuente, A. M. (2005). Fuzzy logic in financial analysis (pp. 318-328). Berlin: Springer.

Jorion, P. (1991). The Pricing of Exchange Rate Risk in the Stock Market. Journal of Financial and Quantitative Analysis, 26(3), 363-376. doi:10.2307/2331212

Michael, J. and Richardson, A. (2008), "Healthcare for All: The Independent Inquiry into Access to Healthcare for People with Learning Disabilities", Tizard Learning Disability Review , Vol. 13 No. 4, pp. 28-34. https://doi.org/10.1108/13595474200800036

Peltier, A. (2017). 7-2 Final Milestone Risk Analysis Pertaining to Cyberlaw and Ethics

Regulations of ABC Healthcare Joey Chandler Professor Alicia Peltier IT-412–Cyberlaw and Ethics.

Pride, W. M., Hughes, R. J., Kapoor, J. R., Althouse, N. R., & Allan, L. A. (2020). Business.

Nelson.

Rappaport, A. (2006). Ten Ways To Create Shareholder Value. https://hbr.org/2006/09/ten-ways-to-create-shareholder-value

Thomsett, M. C. (2019). Practical Trend Analysis: Applying Signals and Indicators to Improve

Trade Timing. Walter de Gruyter GmbH & Co KG.

Tracy, A. (2012). Ratio analysis fundamentals: how 17 financial ratios can allow you to analyse

any business on the planet. ratio analysis. net.

Witzel, M. (2012). THE ESSENTIALS OF FINANCIAL ANALYSIS. Corporate Finance

Review, 16(5), 46.

,

Create a 4-6 page report that analyzes financial ratios for a company, uses the data to tell the financial story of that company, and concludes with a recommendation on whether the company would be a viable partner based on its financial condition.

Introduction

It’s essential for senior management to know the financial condition of an organization in order to make strategic decisions. In this assessment, you will apply the financial management skills learned thus far.

· Tell the financial story based on financial statements.

· Conduct a financial analysis and identify focus areas for enhancing shareholder value.

· Interpret ratio computations that are meaningful and inform business decisions and strategies.

· Make three recommendations that maximize shareholder value.

Scenario

Maria Gomez is founder and president of ABC Healthcare Corporation, a company that owns hospitals, ambulatory surgical centers, urgent care centers, and outpatient clinics. She has called on you to review various financial documents and to make recommendations to maximize shareholder value.

Your Role

You are one of Maria's high-performing financial analyst managers at ABC Healthcare Corporation and she trusts your work and leadership.

Requirements

Here is what your report should provide for Maria:

· A summary of the financial strength of the company through your analysis of the price/earnings and price/book ratios.

The CFO for ABC Healthcare Corporation assessed the market value by reviewing its price/earnings ratios. The price/earnings ratio determines the market value of a stock as compared to the company's earnings. The price/earnings ratios are listed in the chart below. To calculate the price/earnings ratio, the CFO took the earnings per share and divided that into the market value. As an example, this means that in 2019 investors were willing to pay $12.10 for $1 of earnings.

Price/Earnings Ratio

2019

2018

2017

Market Price

83.62

83.62

83.62

Earnings Per Share

6.91

7.87

9.15

Price/Earnings Ratio

12.10

10.63

9.14

To further assess market value, the CFO looked at book value per share. The book value per share ratio is the per share value of a company in terms of the equity available to stockholders. The book values per share over the past three years are listed in the chart below:

Price/Ratio Ratio

2019

2018

2017

Market Price

83.62

83.62

83.62

Book Value per Share

199.1

209.05

226

Price to Book Ratio

.42

.40

.37

The price-to-book ratio (P/B ratio) compares a firm's market capitalization to its book value. It's calculated by dividing the company's stock price per share by book value per share. Here, for fiscal year 2019, the book value per share ratio was 0.42. This explains that investors were willing to pay $0.42 for $1 of book value equity. Price to book value is an important measure to see how much equity shareholders are paying for the net assets value of the company. P/B ratios under 1 are typically considered solid investments.

· Based on your analysis, what is your general perception of the company’s financial strength? Is it performing well given industry standards? How does it compare to its closest rival,  HCA Healthcare ? What information do you need in order to conduct such an analysis?

· Given your review, how can it maximize shareholder value? What are focus areas for enhancing shareholder value for the long term? What short-term steps might be necessary for longer-term gains?

· In your analysis you may choose to look at competitive data. You may calculate ratios to gain a true comparison.

· After conducting your analysis, provide at least three recommendations to Maria that maximize shareholder value.

Deliverable Format

Create a report that tells the financial condition of this company. Your report should provide information on the following:

· Analysis of the financial statements.

· Evaluation of the true condition and valuation of the company.

· Recommendation of actionable items for the company based on the financial analysis.

Financial Condition Analysis Report Requirements:

Remember that you're preparing a professional document meant for executive leadership with limited time.

· Title Page.

· Executive Summary.

· Company Background.

· Overall Financial Analysis.

· Financial Ratio Analysis.

· Trend Analysis.

· Competitive Comparative Analysis.

· Recommendations.

· Conclusion.

· References.

· Appendix (if you have additional data, reports, charts, et cetera, to support your analysis).

Additional Requirements:

Your report should follow the corresponding MBA Academic and Professional Document Guidelines, including single-spaced paragraphs.

· Ensure written communication is free of errors that detract from the overall message and quality.

· Format your paper according to APA style and formatting.

· Use at least three scholarly resources.

· Length: Between 4-6 pages of content, beyond the title page, references, and appendices.

· Use 12 point, Times New Roman.

Evaluation

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies through corresponding scoring guide criteria:

· Competency 1: Apply the theories, models, and practices of finance to the financial management of an organization.

1. Analyze financial ratio analysis, trend analysis, and competitive average analysis.

1. Competency 3: Apply financial analyses to business planning and decision making.

2. Evaluate the provided financial statements of the firm to find its true condition and valuation.

1. Competency 4: Use data to support evidence-based financial decisions.

3. Develop actionable items and conclusions, based on the analysis, recommending at least three ways to maximize shareholder value.

1. Competency 5: Communicate financial information with multiple stakeholders

4. Tell the current financial story as to the overall health of the firm as it relates to current valuation and the future prospects of the company. Identify focus areas for enhancing shareholder value for the long term. Note what short-term steps might be necessary for longer-term gains.

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