According to the book, balance sheet records what an organization owns, what it owes, and what it is worth. Income statement is the of the financial statement that measures a company or an organization’s performance over a specific accounting period This done by giving clues or summary as to how the organization incurs its revenue and expense via both operating and non-operating means or activities. It also indicates the net profit or loss incurred over a specific accounting period, typically over a fiscal quarter or year.
A statement of cash flow is complement income statement and balance sheet. It is a mandatory record of the amount of cash and cash equivalent entering and leaving an organization. This allows investors to learn how an organization in this case universal health services operation is running, where the money is coming from and how it is being spent. Investors also learn how cash flow is structure and how an analyst can used this information to interpret that organization cash flow standing going forward.
Now I will turn my attention analyzing the statement I mentioned in this paper. The first one will be the income statement, from 2009 to 2011.
Income statement measures an organization’s financial performance over a specific accounting period. It is also refer to as profit and loss statement. For the period under consideration the organization was profitable.
Total revenues as of: 2009, 2010, 2011, (All in Million).
$ 4,693.6 $ 4,900.1 $ 6, 760.2
Gross profit: 1,790.1 1,818.3 2,628.4 (BusinessWeek).
As an analyst, I sensed an increase in revenues on the income statement for universal health services for the period under consideration and I am encouraged to continue on this path. Also investor should invest in the organization because history is on their side. This is the assurance investors are looking forward to. Investors are the external viewers of this important information, whereas management forms the inter part of the viewers. The trend is on an upward projection for both revenue and profit.
The next part of the financial statement I will look at will be the balance sheet. According to the book, balance sheet records what an organization owns, what it owes, and what it is worth. Income statement is the of the financial statement that measures a company or an organization’s performance over a specific accounting period
It gives clues or summary as to how the organization incurs its revenue and expense, operating and non-operating means or activities. It also indicates the net profit or loss incurred over a specific accounting period, typically over a fiscal quarter or year. It is also known as the organization health or snapshot of health.
Again for the period under consideration in this analysis:
Total Assets as of: 2009, 2010, 2011, (All in millions).
$3,964.4 $ 7,527.9 $ 7,665.2
Total Liability $ 1,989.5 $ 5,929.4 $ 5,099.6 (BusinessWeek).
This information is encouraging to both internal and external viewers. What investors are looking for on an organization balance sheet is information that will tell them about the financial health of the organization. In other words is the organization is in the position to meet its financial obligation when due. In this case base on the analysis it yes because an asset in this case exceeds liability. If it is the other way round investors will pull away from the company which means the company could be on the path of bankruptcy. The primary objective of any publicly trading organization is to maximize shareholders values ( Brigham & Ehrhardt , pg 9, customized 13 edition financial management).
Edwin togba
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