The Case of the Unidentified Healthcare Companies Questions

Please answer the following question on The Case of the Unidentified Healthcare Companies - 2010. List each question followed by your answer below the question. Teams will be selected at random to lead the class discussion on this case.

1. Identify the companies listed on page 3 of the case for A, B, D, F, H, I, K, L, and M.
   1. List the type of healthcare segment they represent (Biotechnology, Community Nursing, Distributor (medical), etc.)
   2. Support your answers with data from each firms common size financial statements.
   3. The Community Nursing, Home Care Provider, and Lab/Diagnostic firm are not any of the answers.

Note the common size financial information for firms F and K is relatively similar. If you reverse the answers on these two firms but support your answers well, you will receive full credit.

	A	B	C	D	E	F	G	H	I	J	K	L	M	N
Cash and Marketable Securities	11	66	20	13	3	7	8	9	3	6	9	16	14	0
Accounts Receivable	3	0	18	29	13	15	14	15	20	10	14	14	12	41
inventory	0	0	0	33	0	10	0	0	13	0	4	10	5	0
other current assets	4	1	1	1	3	5	6	8	4	3	1	5	4	9
net PP&E	1	3	5	3	8	11	40	54	10	10	10	30	9	40
Goodwill	13	27	55	13	67	37	22	9	41	59	44	5	30	0
Intangibles	2	1	1	2	5	12	3	3	6	10	16	0	9	0
Other assets	66	2	0	6	1	3	7	2	3	2	2	20	17	10
total assets	100	100	100	100	100	100	100	100	100	100	100	100	100	100
notes¤t debt payable	1	2	0	0	4	4	3	0	0	2	4	0	9	9
account payable	12	2	1	47	1	8	3	9	11	2	2	4	1	21
accrued expenses	6	6	14	9	13	9	10	7	11	8	7	3	8	6
other current liabilities	3	5	0	4	1	2	0	6	0	0	1	17	0	6
long-term debt	10	6	0	8	15	13	42	54	20	34	39	24	25	27
other liabilities	44	23	0	5	3	8	13	15	7	7	8	17	5	0
equity	1	194	138	1	31	35	42	43	13	9	38	20	0	31
retained earnings	23	-138	-53	26	32	21	-13	-34	38	38	1	15	52	0
total liabilities and net worth	100	100	100	100	100	100	100	100	100	100	100	100	100	100
income statement %
Revenue	100	100	100	100	100	100	100	100	100	100	100	100	100	100
COGS or Cost of sales	-75	-14	-69	-95	-48	-47	-66	-60	-71	-58	-46	-19	-24	-49
Gross profit	25	86	31	5	52	53	34	40	29	42	54	81	76	51
R&D	0	-540	0	0	0	-6	0	0	0	0	-5	-20	-9	0
SG&A	-17	-119	-25	-3	-35	-23	-25	-30	-22	-21	-20	-26	-37	-24
Depreciation & Amortization	-1	-29	-1	0	-2	-7	-2	-4	-2	-3	-8	-6	-5	-1
non-operating income	0	-20	0	0	0	0	0	1	0	0	0	-4	2	0
EBIT	7	-622	5	2	15	17	7	7	5	18	21	25	27	26
Interest expense	-1	-8	0	0	-1	-1	-3	-4	-2	-2	-5	-1	-2	-1
income taxes	-2	0	-1	-1	-5	-1	-2	0	0	-6	-5	-4	-5	0
net income	4	-630	4	1	9	15	2	3	3	10	11	20	20	25
5 tear revenue growth	9%	-9%	-7%	5%	32%	21%	20%	1%	2%	6%	11%	8%	7%	1%
CA/CL	0.81	4.59	2.65	1.26	0.95	1.6	1.76	1.39	1.82	1.59	1.95	1.9	1.92	1.19
cash&equivalebt/ CL	0.79	0.99	0.98	0.55	0.85	0.79	0.79	0.75	0.58	0.81	0.08	0.67	0.72	0.97
Total debt/total asset	0.11	0.08	0	0.08	0.18	0.45	0.45	0.54	0.2	0.36	0.43	0.24	0.34	0.69
L-T debt/capitalization	0.3	0.02	0	0.13	0.22	1.13	1.13	2.08	0.31	0.32	0.45	0.16	0.17	0.47
Revenue/total assets	0.9	0.05	1.44	3.86	1.29	1.2	1.2	1.13	1.25	0.87	0.66	0.8	0.56	6.97
net profit/total asset	0.03	-0.33	0.06	0.04	0.12	0.02	0.02	0.03	0.03	0.09	0.08	0.16	0.11	1.76
total asset/ bet worth	4.06	1.78	1.18	3.74	1.59	3.5	3.5	11.41	1.94	2.13	2.58	2.88	1.92	3.27
net profit/net worth	0.13	-0.59	0.07	0.17	0.19	0.1	0.09	0.37	0.06	0.19	0.19	0.45	0.21	5.74
days of inventory				33		186			52		48	245	142
receivables collection period(days)	13	34	46	27	36	132	43	47	57	41	78	64	77	27