Group Assignment-Health Care Facilities and Services

by


We are Team of 3 each individual is given with one health Care company. I am assigned with Quest Diagnostics.(DGX-Stock Symbol).I need to answer for Quest Diagnostics for the following Questions.Please see attachments for income statement,Balance sheet,cash flow,Growth table,Financial Health and operating efficiency report for reference for quest diagnostics-Please see answers reported by another member in the team for another company

1) Company Ranking:(The ranking of each company in the industry in terms of their financial strengths and weaknesses)

a)DGX Strengths:(Give 2 strengths)-Please see below example one my teammate lindsey given for  Lab Corp-LH company

1) Answer

2) Answer

b)DGX weakness:(Give 2 weakness)-Please see below example one my teammate lindsey given for  Lab Corp-LH company

1)Answer

2)Answer

c)Company Ranking (using your financial documents, identify 2021 revenue, profit loss/gain and total liabilities)- see below example one my teammate lindsey given for  Lab Corp-LH company

2. Industry(Helath care Facilities and services) Strengths & Weaknesses overall 

a)Give 3 strenghts(Please see below example one my teammate lindsey given for  health care facilities and services industry)

b)Give 3 weekness(Please see below example one my teammate lindsey given for  health care facilities and services industry)

3) Market Rankings (Whether the market’s ranking of the companies (e.g., stock performances in the secondary market) agree with your analysis in #1)-Please see below example one my teammate Lindsey given for  Lab Corp-LH company.

Lindsey Answers: One of my teammate Linsey provided answers for other company  .Please use as reference.

  1. Company Rankings (The ranking of each company in the industry in terms of their financial strengths and weaknesses) ~ One page total Laboratory Corporation of America Holdings (Ticker: LH) – Lindsey
  2.            a)LH Strengths:
  3. LapCorp reported a gross profit of $56,243 billion, an increase of 33.34 percent from the previous year. The Company also reported a total revenue of $16,120.9 billion in 2021, an increase of 13.39 percent from the previous year. These figures can show an increase in demand for the Company’s products and services. Additionally, total operating cash flow for 2021 was $3,109.6 billion, an increase of 31.33 percent from 2020. Investments made by the company can also be attributed to these gains. 
  4. Strengths from the balance sheet: Cash and cash equivalents for 2021 was reported at 14,727 billion, an increase of 10.31 percent from the previous year. Net Property, Plant and Equipment (PP&E) in 2021 was $28,154 billion, an increase of 3.05 percent from the previous year. An increase in PPE makes sense when presented with the Company’s increase in revenue, more PP&E is needed for expansion in services and clients. Additionally, total liabilities decrease by over 10 percent in 2021 compared to 2020 (Laboratory Corporation of America Holdings, 2022).
  5. b)LH Weaknesses:

    1. Inventory in 2021 decreased by 5.43 percent. Given the increase in total revenue it is interesting to see that the Company is essentially “doing more” with less. This may be attributed to a change in the business model to a more service-based menu for clients but could also indicate unsustainable practices.
    2. Accumulated depreciation increased by 8.71 percent in 2021 compared to the previous year. This creates a larger liability for the Company. 
  6. C) Company Ranking (using your financial documents, identify 2021 revenue, profit loss/gain and total liabilities)

    1. LabCorp

      1. Revenue: LabCorp reported a total revenue of $16,120.9 billion in 2021, an increase of 13.39 percent from the previous year.
      2. Profit Loss/Gain: LabCorp reported a total operating profit of $3,302.6 billion in 2021, an increase of 10.73 percent from the previous year.
      3. Total Liabilities: LabCorp reported total liabilities of $10, 112 billion in 2021, a decrease of 5.93 percent from the previous year. 

 2.Industry(Helath care Facilities and services) Strengths & Weaknesses ~One Page

  1. Strengths:
    1. Lindsey: 
      1. Lack of regulatory standards for the government. The industry can essentially operate how it sees fit (profit-driven) 
      2. Companies have the ability to diversify their offerings (LabCorp offers drug R&D, diagnostics tech, info tech, testing supplies, etc.)
      3. COVID-19 pandemic identified the ability to pivot to telehealth/virtual services, expanded opportunities.

 Weaknesses: 

  1. Lindsey:
    1. Supply chain issues are still affecting distribution of supplies

    Staffing, industry has high turnover (https://www.mgma.com/data/data-stories/staffing,-uncertainty-among-top-pandemic-challenge)  

     3) Market Rankings (Whether the market’s ranking of the companies (e.g., stock performances in the secondary market) agree with your analysis in #1) ~ One page

  2. Laboratory Corporation of America Holdings (Ticker: LH) – Lindsey

    1. The market expects LabCorp (LH) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2022.
    2. The earnings report, which is expected to be released on October 27, 2022
    3. 52-Week High:317.17 
    4. 52-Week Low: 200.32