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 hospitals?primarily community hospitals?with 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 firm's 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 Balance Sheet Percentages (%) Cash and Marketable Securities 66 Accounts Receivable 18 15 UI P Inventories Other Current Assets] Net Property, Plant, & Equipment Goodwill 13 55 Intangibles3 Other Assets 66 BNGWHO aNOW wabbawe win 10 19. Total Assets 100 100 100 100 100 100 100 BNWORDOMOI 100 100 100 100 100 100 100 10. 11. Accounts Payable 2 12. s document is authorized for use only by STE Notes & Current Debt Payable Accrued Expenses 13 13. Other Current Liabilities 14. Long-Term Debt 15 15. Other Liabilities" BEwarm 23 8 16. Equity (Common + Preferred Stock) 194 138 31 GOWNDOO A 13 2 17. Retained Earnings 23 26 32 21 13 HODOHVNA 20 -138 -53 -34 38 15 18. Total Liabilities and Net Worth 100 100 100 100 100 100 100 100 100 100 100 100 100 Income Statement Percentages (%) 19. Revenue 100 100 100 100 100 100 100 100 10 100 10 100 100 20. COGS or Cost of Sales -75 -14 -69 -95 -48 -71 -46 m 21. Gross Profit 25 86 31 81 76 51 22. Research and Development (R&D) -540 -20 0 ASP 23. Sales, General, & Admin (SG&A) 0 -17 -119 -26 -24 24. Depreciation & Amortization -1 -29 25. Non-Operating Income 0 -20 2 26. EBIT 622 26 20 27. Interest Expense -8 28. Income Taxes 29 Net Income -630 HONOOWE WONMONROE BANbodNOB 25 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 Selected Financial Data 31. A D E 4.59 G 32. Current Assets / Current Liabilities B 0.81 F Cash & Equivalent / Current Liabilities 2.65 1.26 H 0.79 0.95 1.60 0.99 0.98 1.67 I K 1.39 L M N 0.85 1.59 1.95 33. 0.55 1.82 0.60 0.79 1.90 0.75 1.92 1/19 Total Debt / Total Assets 0.11 0.08 0 0.08 0.18 0.58 0.17 0.45 0.81 0.80 0.54 0.67 0.72 34. Long-Term Debt / Capitalization 0.30 0.02 0 0.13 0.20 097 0.12 0.35 0.08 1.13 0.43 0.24 2.08 0.34 0.69 35. Revenue / Total Assets 0.90 0.05 1.44 3.86 1.29 0.31 0.41 1 20 0.32 0.45 1.13 0.16 1.25 0.87 0.17 36. Net Profit / Total Assets 047 0.66 0.80 0.56 37. Total Assets / Net Worth 0.03 -0.33 0.06 0.04 4.06 0.12 1.78 0.06 1 18 0.02 3.74 0.03 1.59 0.03 0.09 6.97 0.16 0.11 38. Net Profit / Net Worth 1.76 0.08 -0.59 0.07 3.50 0.17 11.41 1.76 0.13 0.19 1.94 0.10 0.09 2.13 2.58 2.88 1.92 39. 0.06 0.19 3.27 0.19 0.45 0.21 5.74 40. Days of Inventory 0.37 Receivables Collection Period (Days) 33 13 186 34 46 27 36 52 132 48 43 245 47 57 142 41 78 64 77 27