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