Health Care Fianacial Management Course ISBN: 9781567937060 Publicly Traded Heal

Question

Health Care Fianacial Management Course

ISBN: 9781567937060

Publicly Traded Health Organizations

This discussion is designed to assist you in your preparation for the paper. Identify two publicly traded health organizations in the same segment and consider the following for your post:

Discuss their financial performance over the past 3 years of any publicly traded Health organization

Looking at the financial ratios of both companies, is one company outperforming the other? In what areas are they performing better?

What is the future outlook for both companies?

Explanation / Answer

Segment: Pharma

Agile Therapeutics, Inc.: The Net Income and Earnings per share for the stock has improved somewhat over the past 3 years however the Net Income and Earnings per share have been negative. The revenues generated has been 0 the operating expenses makes the Net Income negative. Total Assets have improved since 2012 have almost became doubled. Operating cash flows have been negative with last fiscal value of -25.92 million.

Acura Pharmaceuticals Inc. The Net Income and Earnings per share for the stock has declined somewhat over the past 3 years and the Net Income and Earnings per share have been negative. The revenues generated has been 751000 in recent fiscal, the much larger operating expenses makes the Net Income negative. Total Assets have declined since 2012 have almost became halved. Operating cash flows have been negative with last fiscal value of -4.99 million.

Looking at the Price/Book ratios, Agile looks overpriced at 5.22 as compared to Acura's 2.87.The Return on Assets for Acura has been high at -18.79% as compared to  Return on Assets for Agile which is much lesser at -32.83%,therefore the Acura has been generating more earnings out of its assets using assets more efficiently as compared to Agile. Return on Equity for Acura has been very less as compared to Agile therefore the Agile is generating more profits in terms of its equity investment as compared to Acura . Current ratio for Acura has been at 4.42 less than that of Agile at 4.56,the Quick and Cash ratio for Acura have been less than that of Agile ,this shows that the Agile is more resilient in terms of meeting short term liabilities.The earning per share has been -.66 for Acura while -1.58 for Agile, that is Acura is distributing more profits for shareholders as compared to Agile. The Acura seems to outperform Agile with much higher earnings per share and Return on Assets.

Agile Therapeutics, Inc. :Over the next 5 years analysts expect the earnings of the company to grow at an average annual growth rate of 0%.This year the expected earnings growth rate is -13.71% over last year. Expected earnings growth rate of 11.23% over the year 2016.

Acura Pharmaceuticals Inc. Over the next 5 years analysts expect the earnings of the company to grow at an average annual growth rate of 0%.This year the expected earnings growth rate is 71.11% over last year. Expected earnings growth rate of 115.38% over the next year 2016.

Acura Pharmaceuticals Inc Ratios Period Ending: Trend 12/31/2014 12/31/2013 12/31/2012 Liquidity Ratios Current Ratio 4.42 24.8 19.66 Quick Ratio 4.32 24.57 19.51 Cash Ratio 4.04 23.55 19.26 Profitability Ratios Gross Margin 70% 7% N/A Operating Margin -1624% -11455% N/A Pre-Tax Margin -1759% -11302% N/A Profit Margin -1759% -11302% N/A Pre-Tax ROE -261% -78% -35% After Tax ROE -261% -78% -35%

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