Try to match the 14 firms operating in the healthcare sectors named below with the 14 sets of financial data presented in Exhibit 1 and Exhibit 2. Use any approach you find helpful.

• Biotechnology (global biotechnology firm engaged in the discovery and development of breakthrough small molecule drugs for serious diseases; revenues are generated primarily through collaborative R&D, license fees, and royalties)
• Distributor (Medical) (global supplier of medical products and services, from pharmaceuticals to medical supplies)
• Durable Medical Equipment (DME) Licensee and Seller (leading licensee and manufacturer of DME, including wheelchairs, bariatric equipment, disability scooters, respiratory products, and other homecare products; recent regulation of qualification processes for Medicare, the primary payor for this DME, has adversely affected collections)
• Durable Medical Equipment (DME) Developer and Seller (leading developer and manufacturer of DME, including hospital beds, specialized mattresses, and therapy systems; development of DME requires relatively fast-depreciating/amortizing assets)
• Hospital (Diversified) (owns or leases about 50 acute care hospitalsprimarily community hospitalswith a total of almost 15,000 beds in a dozen states)
• Insurer (one of the largest health insurers in the US (HMO, PPO, POS, HSA, traditional indemnity, dental, vision, behavioral health, Medicare), which also offers life, disability, and long- term care insurance)
• Medical Device Manufacturer (leading researcher, developer, and manufacturer of highly profitable, implantable biomedical devices)
• Nursing Home Operator (provides long-term, subacute, and related health care services at about 200 managed inpatient facilities in 25 states, totaling some 23,000 beds; primarily nursing centers for seniors, but also offers assisted and independent living arrangements and behavioral health services; growth has come primarily from M&A activity, including three large recent acquisitions)
• Pharmaceuticals (Branded) (conducts intensive research to develop novel medicines for a wide variety of ailments, with sales and marketing in over 130 countries)
• Pharmaceuticals (Generic) (world-leading generic pharmaceuticals business, making generic versions of hundreds of brand-name drugs and selling them globally)
• Private Practice (private practice / multi-specialty clinic of roughly 40 doctors delivering state-of- the-art care, across most major specialties, at 8 locations within one major US metropolitan area)

1. Identify the companies listed on page 3 of the case for A, B, D, F, H, I, K, L, and M.

a. List the type of healthcare segment they represent (Biotechnology, Community Nursing, Distributor (medical), etc.)

b. Support your answers with data from each firms common size financial statements.

c. The Community Nursing, Home Care Provider, and Lab/Diagnostic firm are not any of the answers.

611-043 -3- Exhibit 1 Balance Sheet and Income Statement Percentages for Unidentified Healthcare Sector Companies I K N M 14 6 L 16 14 9 10 14 nimi Balance Sheet Percentages (%) Cash and Marketable Securities Accounts Receivable Inventories Other Current Assets Net Property, Plant, & Equipment Goodwill Intangibles Other Assets Total Assets w281 Na Notes & Current Debt Payable Accounts Payable Accrued Expenses Other Current Liabilities Long-Term Debt Other Liabilities Equity (Common + Preferred Stock) Retained Earnings Total Liabilities and Net Worth N This document is authorized for use only by STEVEN CASPER in 2019. 100 Income Statement Percentages (%) Revenue COGS or Cost of Sales Gross Profit Research and Development (R&D) Sales, General, & Admin (SG&A) Depreciation & Amortization Non-Operating Income EBIT Interest Expense Income Taxes Net Income 39***** 30. 5-Year Revenue Growth (CAGR) 9% -9% -7% 5% 32% 21% 20% 1% 2% 6% 11% 8% 7% 1% Exhibit 2 Selected Financial Information for Unidentified Healthcare Sector Companies 1 N 1.19 31. 32. E 0.95 0.85 0.18 J 1.59 0.81 0.35 M .92 0.72 0.34 34. A 0.81 0.79 0.11 0.30 0.90 0.03 4.06 0.13 B C 4.59 2.65 0.99 0.08 0.02 0.051.44 -0.33 0.06 1.78 1.18 -0.59 0 .07 0 Selected Financial Data Current Assets / Current Liabilities Cash & Equivalent / Current Liabilities Total Debt / Total Assets Long-Term Debt / Capitalization Revenue / Total Assets Net Profit / Total Assets Total Assets/ Net Worth Net Profit / Net Worth Days of Inventory Receivables Collection Period (Days) D 1.26 0.55 0.08 0.13 3.86 0.04 3.74 0.17 0.22 F 1.60 0.60 0.17 0.08 .41 0.06 1.76 0.10 G 1.67 0.79 0.45 1.13 1.20 0.02 3.50 0.09 0.32 0.17 H I 1.39 1.82 0.75 0.58 0.54 0.20 2.08 0.31 1.131 .25 0.03 0.03 11.41 1.94 0.37 0.06 52 47 57 1.290 0.12 1.59 0.19 K 1.95 0.80 0.43 0.45 0.66 0.08 2.58 0.19 4 8 78 0.87 0.09 2.13 0.19 36. 37. L 1.90 0.67 0.24 0.16 0.80 0.16 2.88 0.45 245 64 0.56 0.11 1.92 0.21 142 7 27 33 I 186 This do 40. - 13 13 34 34 46 7 36 132 43 41 611-043 -3- Exhibit 1 Balance Sheet and Income Statement Percentages for Unidentified Healthcare Sector Companies I K N M 14 6 L 16 14 9 10 14 nimi Balance Sheet Percentages (%) Cash and Marketable Securities Accounts Receivable Inventories Other Current Assets Net Property, Plant, & Equipment Goodwill Intangibles Other Assets Total Assets w281 Na Notes & Current Debt Payable Accounts Payable Accrued Expenses Other Current Liabilities Long-Term Debt Other Liabilities Equity (Common + Preferred Stock) Retained Earnings Total Liabilities and Net Worth N This document is authorized for use only by STEVEN CASPER in 2019. 100 Income Statement Percentages (%) Revenue COGS or Cost of Sales Gross Profit Research and Development (R&D) Sales, General, & Admin (SG&A) Depreciation & Amortization Non-Operating Income EBIT Interest Expense Income Taxes Net Income 39***** 30. 5-Year Revenue Growth (CAGR) 9% -9% -7% 5% 32% 21% 20% 1% 2% 6% 11% 8% 7% 1% Exhibit 2 Selected Financial Information for Unidentified Healthcare Sector Companies 1 N 1.19 31. 32. E 0.95 0.85 0.18 J 1.59 0.81 0.35 M .92 0.72 0.34 34. A 0.81 0.79 0.11 0.30 0.90 0.03 4.06 0.13 B C 4.59 2.65 0.99 0.08 0.02 0.051.44 -0.33 0.06 1.78 1.18 -0.59 0 .07 0 Selected Financial Data Current Assets / Current Liabilities Cash & Equivalent / Current Liabilities Total Debt / Total Assets Long-Term Debt / Capitalization Revenue / Total Assets Net Profit / Total Assets Total Assets/ Net Worth Net Profit / Net Worth Days of Inventory Receivables Collection Period (Days) D 1.26 0.55 0.08 0.13 3.86 0.04 3.74 0.17 0.22 F 1.60 0.60 0.17 0.08 .41 0.06 1.76 0.10 G 1.67 0.79 0.45 1.13 1.20 0.02 3.50 0.09 0.32 0.17 H I 1.39 1.82 0.75 0.58 0.54 0.20 2.08 0.31 1.131 .25 0.03 0.03 11.41 1.94 0.37 0.06 52 47 57 1.290 0.12 1.59 0.19 K 1.95 0.80 0.43 0.45 0.66 0.08 2.58 0.19 4 8 78 0.87 0.09 2.13 0.19 36. 37. L 1.90 0.67 0.24 0.16 0.80 0.16 2.88 0.45 245 64 0.56 0.11 1.92 0.21 142 7 27 33 I 186 This do 40. - 13 13 34 34 46 7 36 132 43 41