Health Care Disaster Preparedness for Hospitals Research Project Paper
Health Care Disaster Preparedness for Hospitals Research Project Paper
Description
Requirement #4: Short Essay Questions
Please answer the following short essay questions using the attached sources (the first parts of the project). Only use scholarly outside sources if really necessary. The questions must be answered using the Company – Acadia and the data from the attachments.
Based on your research of disaster preparedness for hospitals what are the three or four types of disasters that you consider most probable and dangerous and why?
Based on your research about your target company how do their disaster plans meet the standards that you have learned about? Are they prepared for these disasters?
Based on your research about your target company and their hospitals, how did they manage during COVID? Did they meet the expectations or standards that were set by the various agencies? Explain.
What can your target company do to adjust its policies and practices going forward? Why is disaster preparedness a risk issue?
Choose one hospital facility that is managed by your target company. Were there comments, good or bad, about this facility? Should these comments be considered by an auditor? Why?
Prof. F. Kass Term Project Submission Cover Sheet Course Section Term Deliverable # ACCT4501 TD9_6736 Fall 2022 2 Connecting Theory to Practice – Firm Level Risk Analysis Title of Deliverable Company Team Members Acadia Healthcare Company, Inc. 1 2 3 4 Team Leader Certification I hereby certify that: 1. I am the appointed Manager for this deliverable. 2. Each of my team members worked to 100% of the expectation on this project. 3. If any team member did not work to expectation, I have indicated next to their name (above) the percentage of the expectation they did work. (You must be able to explain any reduction in the work.) 4. No part of this submission was copied or otherwise plagiarized. All rules of academic integrity have been adhered to. Name Signature We suppose that of all the risks that management discloses, the human capital risks could most adversely affect the income statement, balance sheet, and cash flow statement. Management notes in the 2021 Annual Report to Stockholders that the company’s “facilities face competition for staffing that may increase our labor costs and reduce our profitability” (p. 15). We would like to emphasize that wage costs are the most significant operating expense for Acadia, which, according to vertical analysis, account for 55.09%, 55.14%, 55.24% and 53.74% of the total net revenue for 2018, 2019, 2020 and 2021, respectively. The development of the simple linear regression model allowed us to predict the projected wage costs for 2022 that amounted to $1,325,987K. Next, we decided to find out what would happen in 2022 if all other data in the income statement remain the same, equal to the data for 2021, and only the amount of wage costs will change to $1,325,987K instead of $1,243,804K increasing by 6.6% and will amount to 57.3% of the total net revenue. As we can see, such adjustments led to changes not only in the income statement, but also in cash flow and balance sheet. On the income statement, an increase in wage costs would reduce net income by 43.1%. Net income will account for 4.7% of total net revenue for 2022, down 3.6% from 2021. On the cash flow, changes in net income would decrease net cash provided by operating activities by 22%. On the balance sheet, these changes decrease cash and cash equivalents by 61.42% and increase accumulated deficit by 68.63%. As we can see, the changes described above led to changes in all ratios without exception. The current liquidity ratio is 1.02 times, which is 0.2 less than in 2021. This ratio indicates that the company has $1.02 of current assets for every $1 of current liabilities. The receivable turnover ratio is 8.23 times, which is less than in 2021 but still demonstrates a very good ability to collect cash from customers. The debt to total assets ratio is 0.47 times, which is slightly more than in 2021 and shows that Acadia is performing well and depending less on debt. In other words, this ratio means the company has $1 in total liabilities to more than $2 of available total assets to pay that debt. Debt service coverage ratio is 0.72 times that means that there is only sufficient net operating income to cover 72% of annual debt payments. The gross profit margin shows that the company receives 38.8% of the profit after paying the cost of revenue, while it was 42.34% in 2021. The profit margin ratio has halved compared to 2021 and amounted to 4.69%. The return on assets ratio (ROA) shows that each dollar invested in assets by Acadia generated 2.29 cents of net income, down 1.09 cents from the 2021 ratio. The asset turnover ratio shows that for every dollar of assets, the company generated $0.49 in sales, up 8 cents from 2021 but half the healthcare industry average of $0.89, according to CSIMarket (https://csimarket.com/screening/index.php?s=at). Everything above confirms that the human capital risk most adversely affects the income statement, balance sheet, cash flow statement, and all ratios without exception. We would like to note that in our case, the concept of equipment refers specifically to property, plant and equipment which are fixed assets. In the company’s income statement, we find such a cost item as supply, which includes, among other things, the cost of medications. Supply is part of the cost of revenue and averages 4.16% of the total net revenue. Increasing its cost reduces the following ratios: receivable turnover, debt service coverage, gross profit margin, profit margin, and return on assets; and increases inventory turnover, and asset turnover. A 50% increase in the supply cost results in a 2% decrease in the gross profit margin and the profit margin. Only two ratios not related to the accounts of the income statement remained unchanged. They are the current ratio and debt to total assets. Management notes in the 2021 Annual Report to Stockholders that “During 2020 and 2021, COVID-19 resulted in fewer referrals to our facilities and lower voluntary admissions as individuals were less inclined to leave their homes and seek treatment” (page 18). From this statement we can conclude that the management is saying that their revenues are decreasing however that does not seem to be the case. If we look at the income statement, we can see that the company has a net income of 102.6 million in 2022 and 195 million in 2021 and had a net loss in 2020. If we take all these numbers into consideration, we can see that the company is still doing well despite the risk that the company is facing with regards to COVID-19. Although the company is profitable in 2021 and 2022, when we look at the cash flow, we can see that the amount of cash the company has has decreased significantly but the decrease was a result of cash flow from financing activities. The percentage change for cash flow from financing from 2021 to 2022 was up 3,301% compared to 18.44% in 2020 to 2021 and -7.91 in 2019 to 2021. This shows that the company has a large debt expense/relying on debt a lot which is the cause for the decrease in cash. Although the manager does mention that the company has financial risk, I believe that the reason why the manger decided to include that statement in the 10k is to use COVID-19 to make people think that the company isn’t doing so well with its current operations so it’s holdings in cash decreased however, the reality that the manager is trying to cover up is that it isn’t using managing it’s cash efficiently and it also isn’t balancing it’s use of equity and debt. Prof. F. Kass Term Project Submission Cover Sheet Course Section Term ACCT4501 TD9_6736 Fall 2022 Deliverable # Title of Deliverable Company 1 Create Excel Spreadsheet, Financial Analysis Acadia Healthcare Company, Inc. Team Members 1 2 3 4 Sohaib Ali Oxana Shifrina Maggie Wang Gulnoz Zakirova Team Leader Certification I hereby certify that: 1. I am the appointed Manager for this deliverable. 2. Each of my team members worked to 100% of the expectation on this project. 3. If any team member did not work to expectation, I have indicated next to their name (above) the percentage of the expectation they did work. (You must be able to explain any reduction in the work.) 4. No part of this submission was copied or otherwise plagiarized. All rules of academic integrity have been adhered to. Name Signature Horizontal Analysis Vertical Analysis Percentage Change (Current am.- Previous am)/Previous am. *100 Percentage of the Total Assets amount Acadia Healthcare Company, Inc. CONSOLIDATED BALANCE SHEETS For the Years Ended December 31 (In thousands, except share and per share amounts) 2017 2018 2019 2020 2021 2018 2019 2020 2021 2017 2018 2019 2020 Balance Sheet Changes Horizontal Analysis 2021 ASSETS Balance Sheet Vertical Analysis Total current assets Total current assets Total long-term assets Total current liabilities Total long-term liabilities Total long-term assets Total current liabilities Total long-term liabilities 100.00 92.70 92.66 92.12 89.62 90.00 400.00 365.39 Current assets: $ Cash and cash equivalents Accounts receivable, net (64.66) 1.05 0.82 1.45 5.83 2.81 296,925 67,290 318,087 288,863 273,551 281,332 7.13 (9.19) (5.30) 2.84 4.62 5.15 4.20 4.21 5.90 27,320 – $ 50,510 30,802 – $ 99,535 17,343 – $ 378,697 19,480 – $ 133,813 22,292 15,808 (24.94) 12.75 – (43.70) – 97.06 280.47 12.32 – 14.44 – 0.43 – 0.50 – 0.25 – 0.30 – 0.47 0.33 10,000 10,000 10,000 12,000 12,000 – – 20.00 – 0.16 0.16 0.15 0.18 0.25 17,588 2,049 3,030 6,792 10,807 (88.35) 47.88 124.16 59.11 0.27 0.03 0.04 0.10 0.23 21,427 4,787 15,056 9,028 2,129 19,205 5,055 2,380 10,340 1,989 10,661 4,075 4,786 13,723 1,349 10,025 4,851 897 5,818 1,469 10,786 4,786 1,523 1,884 (10.37) 5.60 (84.19) 14.53 (6.58) (44.49) (19.39) 101.09 32.72 (32.18) (5.97) 19.04 (81.26) (57.60) 8.90 7.59 (1.34) 69.79 (100.00) 28.25 0.33 0.07 0.23 0.14 0.03 0.31 0.08 0.04 0.17 0.03 0.15 0.06 0.07 0.20 0.02 0.15 0.07 0.01 0.09 0.02 0.23 0.10 0.03 0.04 80.00 350.00 70.00 300.00 61.17 Persentage Prepaid expenses Assets held for sale Workers’ compensation deposits – current portion Insurance receivable – current portion Other receivables Inventory Income taxes receivable Cost report receivable Other 250.00 107,335 Other current assets 81,820 – Current assets held for sale 64,967 – 61,332 88,846 1,809,815 79,886 (23.77) – – (20.60) (5.60) 30.25 – 1,937.02 (100.00) 1.67 – 1.33 – 0.94 0.94 1.68 1.29 27.85 – 182.19 Persentage 200.00 471,550 450,417 542,211 2,523,395 495,031 (4.48) 20.38 365.39 (80.38) 7.34 7.30 7.88 38.83 10.38 Property, plant and equipment, net 3,048,130 3,107,766 1,499,587 1,622,896 1,771,159 1.96 (51.75) 8.22 9.14 47.45 50.35 21.80 24.97 37.15 Goodwill 2,751,174 2,396,412 2,085,104 2,105,264 2,199,937 (12.89) (12.99) 0.97 4.50 42.82 38.82 30.31 32.39 46.14 87,348 88,990 68,826 68,535 70,145 1.88 (22.66) (0.42) 2.35 1.36 1.44 1.00 1.05 1.47 Deferred tax assets 3,731 3,468 3,339 3,209 3,080 (7.05) (3.72) (3.89) (4.02) 0.06 0.06 0.05 0.05 0.06 Operating lease right-of-use assets 12,997 60,524 97,795 96,937 133,761 365.68 61.58 (0.88) 37.99 0.20 0.98 1.42 1.49 2.81 Other assets 49,572 64,927 55,106 79,126 94,965 30.98 (15.13) 43.59 20.02 0.77 1.05 0.80 1.22 1.99 – – (100.00) – – – 36.74 – – 5,952,952 5,722,087 6,336,931 3,975,967 4,273,047 (3.88) 10.75 (37.26) 7.47 92.66 92.70 92.12 61.17 89.62 $ 6,424,502 – $ 6,172,504 $ 6,879,142 $ 6,499,362 $ 4,768,078 (3.92) 11.45 (5.52) (26.64) 100 100 100 100 100 $ $ $ Noncurrent assets held for sale Total long-term assets TOTAL ASSETS – 2,527,174 – – LIABILITIES AND SHAREHOLDERS’ EQUITY/(DEFICIT) Current liabilities: Current portion of long-term debt $ 18,594 (2.06) 28.05 251.38 (87.88) 0.54 0.55 0.63 2.36 0.39 Accounts payable 102,299 117,740 90,257 87,815 98,575 15.09 (23.34) (2.71) 12.25 1.59 1.91 1.31 1.35 2.07 Accrued salaries and benefits 99,047 113,299 93,595 124,912 137,845 14.39 (17.39) 33.46 10.35 1.54 1.84 1.36 1.92 2.89 – – 18,119 18,916 23,348 – – 4.40 23.43 – – 0.26 0.29 0.49 141,213 151,226 69,234 178,453 126,499 7.09 (54.22) 157.75 (29.11) 2.20 2.45 1.01 2.75 2.65 – – – 84,584 – – – – (100.00) – – – 1.30 Current portion of operating lease liabilities Other accrued liabilities Derivative instrument liabilities 34,830 $ 34,112 43,679 153,478 – – – 148,692 660,027 – – – 343.89 (100.00) – – 2.16 10.16 – Total current liabilities 377,389 416,377 463,576 1,308,185 404,861 10.33 11.34 182.19 (69.05) 5.87 6.75 6.74 20.13 8.49 Long-term debt 3,205,058 3,159,375 3,105,420 2,968,948 1,478,626 (1.43) (1.71) (4.39) (50.20) 49.89 51.18 45.14 45.68 31.01 Deferred tax liabilities 80,333 80,372 22,820 50,017 74,368 0.05 (71.61) 119.18 48.69 1.25 1.30 0.33 0.77 1.56 Operating lease liabilities – – 85,643 84,029 116,841 – – (1.88) 39.05 – – 1.24 1.29 2.45 Noncurrent derivative instrument liabilities – – 68,915 – – – – (100.00) – – – 1.00 – – 166,434 154,267 107,152 133,412 110,505 (7.31) (30.54) 24.51 (17.17) 2.59 2.50 1.56 2.05 2.32 – – 487,084 – – – – (100.00) – – – 7.08 – – Current liabilities held for sale Other long-term liabilities Noncurrent liabilities held for sale 3,451,825 3,394,014 3,877,034 3,236,406 1,780,340 (1.67) 14.23 (16.52) (44.99) 53.73 54.99 56.36 49.80 37.34 Total liabilities $ 3,829,214 $ 3,810,391 $ 4,340,610 $ 4,544,591 $ 2,185,201 (0.49) 13.92 4.70 (51.92) 59.60 61.73 63.10 69.92 45.83 Total long-term liabilities Shareholders’ equity: Preferred stock, $0.01 par value; 10,000,000 shares authorized, no shares issued – Common stock, $0.01 par value; 180,000,000 shares authorized; 89,028,158 and 88,024,395 issued and outstanding as of December 31, 2021 and 2020, respectively Additional paid-in capital Accumulated other comprehensive loss Accumulated deficit – – – 871 874 877 880 890 0.34 0.34 0.34 1.14 0.01 0.01 0.01 0.01 0.02 2,517,545 (374,118) 428,573 2,541,987 (462,377) 252,823 2,557,642 (414,884) 361,746 2,580,327 (371,365) (310,386) 2,636,350 (119,751) 0.97 23.59 (41.01) 0.62 (10.27) 43.08 0.89 (10.49) (185.80) 2.17 (100.00) (61.42) 39.19 (5.82) 6.67 41.18 (7.49) 4.10 37.18 (6.03) 5.26 39.70 (5.71) (4.78) 55.29 (2.51) 2,517,489 (9.31) 7.37 (24.18) 32.54 40.05 37.80 36.42 29.23 52.80 22,417 28,806 33,151 55,315 65,388 28.50 15.08 66.86 18.21 0.35 0.47 0.48 0.85 1.37 $ 6,424,502 2,572,871 $ 6,172,504 $ 6,879,142 $ 6,499,362 $ 4,768,078 (3.92) 11.45 (5.52) (26.64) 100 100 100 100 100 $ $ $ $ $ Total equity Redeemable noncontrolling interests TOTAL LIABILITIES AND EQUITY – – 2,333,307 – 2,505,381 – 1,899,456 – – 49.80 150.00 30.00 100.00 20.00 38.83 37.34 20.13 50.00 10.00 20.38 10.33 6.75 7.34 5.87 (44.99) 10.75 (50.00) (37.26) (69.05) (100.00) (80.38) (150.00) 2018 10.38 8.49 6.74 – (16.52) 2017 (3.88) 7.88 7.30 7.47 14.23 11.34 (4.48) Intangible assets, net 56.36 54.99 53.73 50.00 40.00 – (1.67) Total current assets 60.00 2019 2020 Axis Title 2021 2018 2019 Axis Title 2020 2021 Horizontal Analysis Vertical Analysis Percentage Change (Current am.- Previous am)/Previous am. *100 Percentage of the Total net Revenue SOURCES of REVENUE Changes Horizontal Analysis SOURCES of REVENUE Vertical Analysis 60.00 40.00 2021 $ 684,292 364,598 1,147,884 93,425 24,195 2018 0.68 (0.33) 12.21 (46.37) (44.90) (100.00) 2019 (1.35) 5.12 12.70 (11.44) (4.44) – 2020 5.54 12.01 3.05 (17.20) 19.91 – 2021 14.68 10.46 10.60 (4.96) (10.41) – 2017 20.07 9.92 28.08 8.81 1.51 33.06 2018 30.09 14.72 46.92 7.04 1.24 – 2019 28.15 14.67 50.14 5.91 1.12 – 2020 28.55 15.79 49.66 4.70 1.29 – 2021 29.57 15.75 49.60 4.04 1.05 – 2,089,929 $ 2,314,394 (33.80) 5.44 4.06 10.74 101.44 100.00 100.00 100.00 100.00 2,089,929 2,314,394 (100.00) (32.85) 5.44 4.06 10.74 (1.44) 100.00 100.00 100.00 100.00 100.00 1,154,522 1,243,804 (31.69) 5.53 4.26 7.73 54.16 55.09 55.14 55.24 53.74 87,241 1,241,763 120,489 37,362 262,272 (32,819) 95,256 482,560 158,105 7,233 4,751 11,720 181,809 1,906,132 90,702 1,334,506 136,739 38,519 301,339 (17,900) 106,717 565,414 76,993 24,650 24,293 12,778 138,714 2,038,634 (28.82) (31.49) (43.92) (55.30) (26.57) (43.82) (37.37) 4.84 124.07 22.47 18.43 (29.32) 5.00 5.49 7.63 3.41 6.51 9.44 7.05 1.51 (100.00) (100.00) (28.81) (1.03) 5.04 2.00 4.10 1.72 5.29 1.05 8.34 (3.76) (15.60) (82.54) (44.60) (22.86) (1.24) 3.97 7.47 13.49 3.10 14.90 (45.46) 12.03 17.17 (51.30) 240.80 411.32 9.03 (23.70) 6.95 4.03 58.20 6.92 2.71 11.70 5.04 26.37 6.21 0.03 0.86 7.09 91.65 4.28 59.37 5.78 1.80 12.79 4.22 24.59 9.69 0.10 1.16 1.56 12.50 96.46 4.26 59.40 5.90 1.77 12.92 4.38 24.97 9.33 1.36 1.05 11.74 96.10 4.17 59.42 5.77 1.79 12.55 (1.57) 4.56 23.09 7.57 0.35 0.23 0.56 8.70 91.21 3.92 57.66 5.91 1.66 13.02 (0.77) 4.61 24.43 3.33 1.07 1.05 0.55 5.99 88.09 183,797 275,760 (71.54) 16.32 134.45 50.04 8.35 3.54 3.90 8.79 11.91 40,606 143,191 67,557 208,203 (73.37) (71.20) 153.20 (7.27) 61.87 168.60 66.37 45.40 1.31 7.04 0.52 3.02 1.25 2.65 1.94 6.85 2.92 9.00 (812,390) (12,641) – (124.39) (1,529.96) (98.44) – (12.23) 2.83 (38.87) (0.55) 50.00 20.00 40.00 (20.00) Percentage 2020 596,698 330,070 1,037,852 98,302 27,007 Percentage Acadia Healthcare Company, Inc. (40.00) (60.00) 30.00 20.00 (80.00) 10.00 (100.00) (120.00) Commercial Medicare Medicaid Self-Pay Other NHS (National Health Service_U.K.) 2018 0.68 (0.33) 12.21 (46.37) (44.90) 2019 (1.35) 5.12 12.70 (11.44) (4.44) 2020 5.54 12.01 3.05 (17.20) 19.91 2021 14.68 10.46 10.60 (4.96) (10.41) (100.00) – – – Commercial Medicare Medicaid Self-Pay Other NHS (National Health Service_U.K.) Categories of expenses Changes Horizontal Analysis 2017 20.07 9.92 28.08 8.81 1.51 2018 30.09 14.72 46.92 7.04 1.24 2019 28.15 14.67 50.14 5.91 1.12 2020 28.55 15.79 49.66 4.70 1.29 2021 29.57 15.75 49.60 4.04 1.05 33.06 – – – – Categories of expenses Vertical Analysis 70.00 30.00 60.00 20.00 50.00 10.00 (669,199) 195,562 (187.92) (162.75) (707.69) (129.22) 7.04 (9.21) 5.48 (32.02) 8.45 (2,933) (4,927) (207.32) 354.17 144.62 67.98 0.01 (0.01) (0.06) (0.14) (0.21) (672,132) $ 190,635 (187.95) (161.98) (717.07) (128.36) 7.05 (9.23) 5.42 (32.16) 8.24 – Axis Title CONSOLIDATED STATEMENTS OF OPERATIONS For the Years Ended December 31 (In thousands, except share and per share amounts) 2017 2018 2019 569,242 $ 573,089 $ 565,350 $ Commercial $ 281,270 280,340 294,691 Medicare 796,375 893,644 1,007,102 Medicaid 249,978 134,054 118,716 Self-Pay 42,774 23,568 22,522 Other 937,595 NHS (National Health Service_U.K.) Revenue before provision for doubtful $ 2,877,234 $ 1,904,695 $ 2,008,381 $ accounts (40,918) Provision for doubtful accounts 2,836,316 1,904,695 2,008,381 Total net revenues Salaries, wages and benefits (excluding equity1,536,160 1,049,317 1,107,357 based compensation expense) 114,439 81,462 85,534 Supplies 1,650,599 1,130,779 1,192,891 Cost of Revenue 196,223 110,049 118,451 Prodessional fees 76,775 34,315 35,486 Rent and leases 331,827 243,671 259,536 Other operating expenses Other income 143,010 80,342 87,923 Depreciation and amortization 747,835 468,377 501,396 Total Operating Expenses 176,007 184,534 187,325 Interest expense, net 810 1,815 Debt extinguishment costs 22,076 Legal settlements expense 27,217 Loss on impairment 24,267 29,719 21,157 Transaction-related expenses 201,084 238,144 235,699 Total Other Expenses 2,599,518 1,837,300 1,929,986 Total expenses Income from continuing operations before 236,798 67,395 78,395 income taxes / Earnings before income taxes 37,209 9,907 25,085 Provision for income taxes 199,589 57,488 53,310 Income from continuing operations (Loss) income from discontinued operatios, net (232,974) 56,812 of taxes 199,589 (175,486) 110,122 Net (loss) Income Net earnings/(loss) attributable to 246 (264) (1,199) noncontrolling interests Net earnings attributable to Acadia $ 199,835 $ (175,750) $ 108,923 $ Heatthcare Company, Inc. Earnings per share attributable to Acadia Healthcare Company, Inc. stockholders: 2.30 (2.01) 1.24 Basic 2.30 (2.01) 1.24 Diluted Weighted-average shares outstanding: 86,948 87,288 87,612 Basic 87,060 87,415 87,816 Diluted (10.00) 40.00 30.00 (20.00) (7.65) (7.59) 2.15 2.10 87,875 88,595 88,769 90,793 20.00 (30.00) 10.00 (40.00) (50.00) Cost of Revenue Total Operating Expenses Total Other Expenses 2018 (31.49) (37.37) 18.43 2019 5.49 7.05 (1.03) 2020 4.10 (3.76) (22.86) 2021 7.47 17.17 (23.70) Cost of Revenue Total Operating Expenses Total Other Expenses 1 58.20 26.37 7.09 2 59.37 24.59 12.50 3 59.40 24.97 11.74 4 59.42 23.09 8.70 5 57.66 24.43 5.99 Acadia Healthcare Company, Inc. Horizontal Analysis Vertical Analysis CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31 (In thousands) Percentage Change (Current am.- Previous am)/Previous am. *100 Percentage of the Net increase in cash and cash equivalents 2018 2017 2017 2018 2019 2020 2021 2019 2020 2021 Net cash provided by investing activities Net cash provided by investing activities 2018 2019 2020 2021 Net cash provided by financing activities Net cash provided by financing activities 2,000.00 3,500.00 199,589 $ (175,486) $ 110,122 $ (669,199) $ 195,562 -187.92▼ -162.75▼ -707.69▼ -129.22▼ 296.61▲ -581.23▼ 110.64▲ -176.71▼ 146.15▲ -43.82▼ 9.44▲ 6.10▲ 14.64▲ -6.25▼ -21.34▼ -121.47▼ -116.16▼ 8.34▲ 5.41▲ 30.03▲ 4,776.77▲ 12.03▲ -67.78▼ 66.77▲ -77.83▼ 212.53▲ 14.65▲ 34.87▲ 46.62▲ 266.10▲ 34.63▲ 72.87▲ -22.31▼ 88.33▲ 12.04▲ 17.39▲ 1.09▲ 25.15▲ 3.34▲ 5.94▲ 14.02▲ 79.75▲ 3.04▲ 28.05▲ 8.80▲ -124.39▼ -1,529.96▼ -98.44▼ 771.64▲ -57.08▼ 214.52▲ 9.45▲ 3,086.59 3,000.00 1,500.00 143,010 9,855 23,467 31,372 80,342 10,456 22,001 (6,737) 87,923 11,987 17,307 1,089 95,256 12,636 22,504 53,108 106,717 4,071 37,530 11,772 – 232,974 (56,812) 812,390 12,641 810 11,412 1,815 22,076 12,505 27,217 3,916 7,233 4,751 1,041 24,650 24,293 491 124.07▲ -100.00▼ -100.00▼ -82.54▼ -73.42▼ 411.32▲ -52.83▼ 16.96▲ (28,570) 20,808 (3,176) (19,702) 14,447 2,725 (18,714) (501) (2,372) 15,340 9,675 1,519 2,448 1,968 (10,770) -31.04▼ -5.01▼ -181.97▼ -30.57▼ -103.47▼ -2,031.14▼ -185.80▼ -187.05▼ -164.04▼ -84.04▼ -79.66▼ -809.02▼ (10,113) 7,701 (20,135) 41,910 6,164 -176.15▼ -361.46▼ -308.15▼ (8,988) 11,794 – 15,883 4,941 – 5,540 16,862 – (10,001) 18,082 86,599 9,755 (14,940) (38,128) -276.71▼ -58.11▼ -65.12▼ 241.27▲ -280.52▼ 7.24▲ 401,270 225,941 183,429 502,844 374,224 -43.69▼ -18.82▼ 174.14▲ (1,693) 188,139 149,475 155,963 253 -11,212.76▼ -20.55▼ 9.58▲ 1.91▲ 18.42▲ 41.42▲ 27.34▲ 3.93▲ 1.25▲ 0.27▲ 18.15▲ 0.37▲ -42.46▼ 30.92▲ -4.72▼ -65.26▼ 47.85▲ 9.03▲ -18.80▼ -0.50▼ -2.38▼ 4.05▲ 2.55▲ 0.40▲ 1.83▲ 1.47▲ -8.05▼ -85.29▼ -15.03▼ 25.51▲ -20.23▼ 11.07▲ 4.61▲ -197.54▼ -182.62▼ -144.03▼ -13.36▼ 17.53▲ 52.61▲ 16.37▲ 5.57▲ 16.94▲ -2.64▼ 4.77▲ 22.87▲ 7.29▲ -11.16▼ -28.49▼ -25.58▼ 596.33▲ 748.35▲ 184.29▲ 132.78▲ 279.66▲ 4.34▲ -99.84▼ -2.52▼ 623.14▲ 150.17▲ 41.18▲ 0.19▲ (19.60) 97.90 (43.16) 593.81 1,371.49 334.46 173.97 -11.11▼ -58.56▼ -100.00▼ -3.75▼ 9.60▲ 13.02▲ -100.00▼ -27.03▼ -407.46▼ -61.02▼ -45.11▼ -838.59▼ -226.11▼ -60.89▼ -7.65▼ -57.20▼ -2.20▼ 7.81▲ 105.50▲ 11.82▲ 0.02▲ -68.68▼ 240.80▲ 1.20▲ 6.01▲ 73.12▲ 399,577 414,080 332,904 658,807 374,477 3.63 Cash paid for acquisions, net of cash acquired Cash paid for capital expenditures Cash paid for real estate acquisitions Proceeds from U.K. Sale Settlement of foreign currency derivatives Proceeds from sale of property and equipment Cash paid for purchase of finance lease Other (18,191) (274,177) (41,057) 5,252 (8,353) (253,187) (18,383) (4,198) (44,900) (225,061) (7,618) 105,008 11,765 12,975 (216,615) (8,349) 92 (13,365) (139,015) (244,811) 1,511,020 (84,795) 3,493 (31,401) 3,142 -100.00▼ -7.66▼ -55.23▼ Net cash used by continuing investing activities (336,526) (275,768) (147,831) (238,237) 1,017,633 -18.05▼ – (85,196) (53,310) (43,602) 279.85 (336,526) (360,964) (201,141) (281,839) 1,017,633 Borrowings on long-term debt Borrowings on revolving credit facility Principal payments on revolving credit facility Principal payments on long-term debt Repayment of long-term debt Payment of debt issuance costs Common stock withheld for minimum statutory taxes, net Distributions to noncontrolling interests Other (57,305) – (39,738) (21,920) – 76,573 (76,573) (52,984) – 925,000 100,000 (100,000) (41,291) (909,785) (18,295) 425,000 500,000 (330,000) (7,969) (2,227,935) (7,964) (3,455) (3,407) (1,648) 184 686 828 (154) (4,369) (916) (3,146) Net cash used by continuing financing activities (60,074) (64,237) (59,155) (48,249) (1,641,061) -203.01▼ -123.51▼ -12.41▼ -13.90▼ 13.04▲ -3.53▼ 1,129.20▲ -63.37▼ 2.61▲ -23.47▼ 2.35▲ -46.39▼ 61.15▲ -527.15▼ -500.11▼ -913.38▼ -148.52▼ -62.91▼ 760.49▲ -37.43▼ -18.21▼ -100.00▼ -282.18▼ -53.56▼ -11.51▼ (44.28) 40.12 (1,195.56) (202.08) (74.42) -100.00▼ -49.74▼ -409.08▼ 7.26 -103.89▼ -182.95▼ -100.00▼ -99.22▼ 3,696.74▲ (461.07) (500.11) 760.49 FINANCING ACTIVITIES Net cash provided by discontinuing financing activities Net cash provided by financing activities Effect of exchange rate changes on cash Net (decrease) increase in cash and cash equivalents, including cash classified within current assets held for sale Less: cash classified within current assets held for sale Net increase in cash and cash equivalents CASH AND CASH EQUIVALENTS: Beginning of period $ Cash and cash equivalents, end of period SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest Cash (received) paid for income taxes EFFECT OF ACQUISIONS: Assets acquired, excluding cash Liabilities assumed Redeemable noncontrolling interest resulting from an acquisition 1,000.00 760.49 2,000.00 593.81 1,500.00 1,000.00 500.00 334.46 279.85 173.97 (74.42) INVESTING ACTIVITIES Net cash provided by discontinuing investing activities Net cash provided by investing activities 1,371.49 2,500.00 Persentage Depreciation and amortization Amortization of debt issuance costs Equity-based compensation expense Deferred income taxes Loss (income) from discontinued operations, net of taxes Debt extiguishment costs Legal settlement expense Loss in impairment Other Change in iperationg assets and liabilities, net of effect of acquisions: Accounts receivable, net Other current assets Other assets Accounts payable and other accrued liabilities Accrued salaries and benefits Other liabilities Government relief funds Net cash provided by continuing operating activities Net cash provided by discontinuing operating activities Net cash provided by operating activities Persentage $ Adjustments to reconcile net income (loss) to net cash provided by continuing operating activities: Cash paid for acquisiotions, net of cash acquired Net cash provided by operating activities Net cash provided by operating activities OPERATING ACTIVITIES Net income (loss) Cash Flow Vertical Analysis Cash Flow Changes Horizontal Analysis 30.59▲ 30.59▲ -22.07▼ -30.66▼ 33.33▲ -100.00▼ 16,295 -1.39▼ -51.63▼ -111.17▼ (1,588) (6,900) 20.70▲ -627.66▼ 494.81▲ -27.99▼ 6.93▲ -7.91▼ -54.05▼ 400.00▲ 230.00▲ -80.70▼ 144.89▲ -56.47▼ 244.26▲ 317.61▲ 76.93▲ 26.41▲ 373.66▲ -76.93▼ -26.41▼ -246.61▼ -53.23▼ -10.90▼ -5.96▼ -240.24▼ -1,664.96▼ -4.83▼ -5.95▼ -85.16▼ -131.62▼ -72.60▼ 8,755.98▲ -5.13▼ -11.28▼ -1.66▼ 0.05▲ 12.18▲ 73.36▲ 119.33▲ 1.02▲ 2.74▲ -0.15▼ -4.39▼ -0.24▼ -0.83▼ -1.19▼ -5.16▼ -18.44▼ 3,301.23▲ -89.28▼ -212.76▼ -59.43▼ -12.74▼ -1,226.38▼ -0.86▼ – (3,093) (2,472) (3,250) -20.08▼ 31.47▲ -100.00▼ -10.24▼ -2.48▼ (60,074) 7,250 (67,330) (2,566) (61,627) 3,546 (51,499) 4,087 (1,641,061) 4,067 12.08 (8.47) -135.39▼ -238.19▼ (16.43) 15.26▲ 3,086.59 -0.49▼ (89.28) 10.77▲ (223.01) -8.50▼ (61.91) 3.56▲ (13.60) 1.08▲ (1,226.38) 3.04▲ 10,227 (16,780) 73,682 329,556 (244,884) -264.08▼ -539.11▼ 347.27▲ -174.31▼ 15.20▲ -55.58▼ 74.03▲ 87.02▲ -183.00▼ – (20,318) (24,657) (75,051) – 21.36▲ 204.38▲ -100.00▼ -67.30▼ -24.77▼ -19.82▼ 10,227 (37,098) 49,025 254,505 (244,884) -462.75▼ -232.15▼ 419.13▲ -196.22▼ 15.20▲ -122.87▼ 49.25▲ 67.21▲ -183.00▼ 57,063 67,290 67,290 30,192 50,510 $ 99,535 124,192 $ 378,697 378,697 133,813 17.92▲ -55.13▼ 145.88▲ 280.47▲ 204.93▲ -64.66▼ 84.80▲ 100.00 222.87▲ 100.00 50.75▲ 100.00 32.79▲ 100.00 283.00▲ 100.00 159,098 10,291 175,204 6,136 173,239 31,915 137,578 (16,486) 93,669 79,304 19,649 (1,458) – 48,594 (3,694) 20,200 (53) 176,365 (37,350) – – – (20,147) – 18,191 – 44,900 – 139,015 $ – $ -24.94▼ 229.67▲ (89.28) 500.00 (202.08) (61.91) 97.90 12.08 (8.47) (43.16) 40.12 (500.00) (13.60) (223.01) (500.11) – 7.26 (19.60) (16.43) 3.63 (1,000.00) (44.28) (500.00) (461.07) (1,000.00) (1,195.56) (1,226.38) (1,500.00) 2018 2019 2020 Axis Title 2021 2017 2018 2019 Axis Title 2020 2021 Ratios Current ratio Inventory turnover ratio Liquidity Ratio Receivable turnover ratio Days Sales of inventory Days Sales in Receivables Debt to total assets Solvency Ratio Debt service coverage ratio (DSCR) Gross Profit Margin Profit margin ratio Profitability ratio Return on assets ratio (ROA) Asset turnover ratio 2018 1.08 229.79 6.19 1.59 58.93 0.62 0.99 0.41 (0.09) (0.03) 0.30 2019 1.17 261.31 6.62 1.40 55.15 0.63 0.72 0.41 0.05 0.02 0.31 2020 1.93 278.24 7.43 1.31 49.11 0.70 0.50 0.41 (0.32) (0.10) 0.31 2021 1.22 276.95 8.34 1.32 43.75 0.46 0.92 0.42 0.08 0.03 0.41 Profitability ratio Solvency Ratio Liquidity Ratio Current ratio Inventory turnover ratio Receivable turnover ratio Debt to total assets Gross Profit Margin Profit margin ratio Debt service coverage ratio (DSCR) Return on assets ratio (ROA) Asset turnover ratio 0.50 1.20 300.00 261.31 278.24 250.00 0.41 0.41 0.41 0.30 0.31 0.31 0.42 0.40 0.99 276.95 1.00 0.92 0.41 0.30 229.79 0.80 200.00 0.72 0.20 0.70 0.62 0.63 0.08 0.10 0.05 0.60 150.00 0.46 – 100.00 0.40 50.00 0.20 (0.03) (0.09) 0.50 0.03 0.02 (0.10) (0.10) (0.20) 6.19 7.43 6.62 1.17 1.22 – 2018 2019 2020 (0.32) (0.30) 8.34 1.93 1.08 2021 2018 2019 2020 2021 (0.40) 2018 2019 2020 2021 Ratios Three Liquidity Ratios: Current ratio Inventory turnover ratio Debt to total assets Two Solvency Ratios 2018 BS 450,417 416,377 IS Receivable turnover ratio Debt service coverage ratio (DSCR) Gross Profit Margin Four profitability ratios Current Assets Current Liabilities Profit margin ratio Return on assets ratio (ROA) Asset turnover ratio Cost of Revenue (Beginning Inventory + Ending Inventory)/2 Net Sales Revenue (Beginning net AR + Ending net AR)/2 Total Liabilities Total Assets Cash Flow from Operations Total Current Liabilities Net Sales Revenue-Cost of Revenue Net Sales Revenue Net income Net Sales Revenue Net income (Beginning Assets + Ending Assets)/2 Net Sales Revenue (Beginning Assets + Ending Assets)/2 2019 1.0818 times 229.79 times 1,130,779 4,921 BS IS BS BS BS 1,904,695 307,506 3,810,391 6,172,504 414,080 416,377 542,211 463,576 2020 1.1696 times 261.31 times 1,192,891 4,565 1.59 days 6.19 times 58.93 days 0.62 0.99 $ times 2,008,381 303,475 4,340,610 6,879,142 332,904 463,576 2,523,395 1,308,185 2021 1.9289 times 278.24 times 1,241,763 4,463 1.40 days 6.62 times 55.15 days 0.63 0.72 $ times 2,089,929 281,207 4,544,591 6,499,362 495,031 404,861 1.2227 276.95 1,334,506 4,819 1.31 days 7.43 times 49.11 days 0.70 658,807 1,308,185 0.50 $ times 1.32 2,314,394 277,442 2,185,201 4,768,078 8.34 43.75 0.46 times Current ratio can be defined as a liquidity ratio that measures a company’s ability to pay short-term obligations. The Inventory Turnover ratio measures the number for times a company’s inventory is times sold and replaced over a year. It is a measure of working capital efficiency and a company’s inventory turnover is often benchmarked against competitors or the industry average. A low turnover ratio can serve as a leading indicator of poor sales (excess days inventory) while a high ratio may imply strong sales. times Account receivable turnover measures the ability to collect cash from customers. Days sales in receivables can be defined as the average number of days it takes to days collect outstanding receiveable amounts from customers. $ The debt-to-total-assets ratio shows how much of a business is owned by creditors (people it has borrowed money from) compared with how much of the company’s assets are owned by shareholders. For example, in 2021 for every 46 cents conpany owes in debt, it has $1 in assets. A lower ratios show a company is performing well and depending less on debt. A higher ratio means a company must maintain a high revenue stream or reduce its debt in order to pay its expenses. 374,477.0 404,861 0.92 The debt-service coverage ratio (DSCR) is a measurement of a firm’s available cash flow to pay current debt obligations. A DSCR of less than 1 means negative cash flow, which means that the company will be unable to cover or pay current debt obligations without drawing on outside sources—in essence, borrowing more. times For example, a DSCR of 0.92 means that there is only sufficient net operating income to cover 92% of annual debt payments. Though there is no industry standard, a DSCR of at least 2 is considered very strong. Many lenders will set minimum DSCR requirements between 1.2 and 1.25. IS 773,916 40.63% 1,904,695 815,490 40.60% 2,008,381 848,166 2,089,929 40.58% 979,888 2,314,394 42.34% This ratio compares the gross margin of a company to its revenue. It shows how much profit a company makes after paying off its Cost of Revenue. The ratio indicates the percentage of each dollar of revenue that the company retains as gross profit. IS (175,750) -9.23% 1,904,695 108,923 2,008,381 5.42% (672,132) -32.16% 2,089,929 190,635 2,314,394 8.24% The profit margin is a ratio of a company’s profit (sales minus all expenses) divided by its revenue. The profit margin ratio compares profit to sales and tells you how well the company is handling its finances overall (175,750) -2.79% 6,298,503 108,923 6,525,823 1.67% (672,132) -10.05% 6,689,252 190,635 5,633,720 3.38% Return on assets is a ratio that provides how much profit a company can generate from its assets. In other words, return on assets (ROA) measures how efficient a company’s management is in earning a profit from their economic resources or assets on their balance sheet. 1,904,695 6,298,503 2,008,381 6,525,823 2,089,929 6,689,252 2,314,394 5,633,720 0.411 Asset turnover can be defined as the amount of sales or revenues generated per dollar of assets. The asset turnover ratio is an indicator of the efficiency with which a company is deploying its assets. IS BS IS BS 0.302 0.308 0.312
