PRESENTED BY: MATTHEW PETRELLA MCKESSON CORP. FINANCIAL ANALYSIS.

Slides:

Advertisements

Similar presentations

PowerPoint Authors: Jon A. Booker, Ph.D., CPA, CIA Charles W. Caldwell, D.B.A., CMA Susan Coomer Galbreath, Ph.D., CPA Copyright © 2010 by The McGraw-Hill.

Advertisements

“How Well Am I Doing?” Financial Statement Analysis

Analyzing Financial Statements

Covering Analyst: Cecilia Xia

(using financial statements)

GET RICH QUICK CO. Financial Statement Ratio Analysis: Profitability Long-Term Financial Position Short-Term Financial Position.

FINANCIAL STATEMENT ANALYSIS. Statement Analysis - 2 FINANCIAL STATEMENT ANALYSIS Objectives Creditors Short term liquidity Long-term solvency Investors.

1 © Copyrright Doug Hillman 2000 Analysis and Interpretation of Financial Statements.

Copyright © 2007 Prentice-Hall. All rights reserved 1 Financial Statement Analysis Chapter 17.

Financial Statement Analysis

Financial Statement Analysis

F INANCIAL S TATEMENTS ANALYSIS. Financial Statement Analysis Who analyzes financial statements? – Internal users i.e., Management, Shareholders, Internal.

Chapter Thirteen Financial Statement Analysis Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.

“How Well Am I Doing?” Financial Statement Analysis

Financial Statement Analysis

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. To make informed decisions about a company Helpful in managing the company Comparison.

FINANCIAL STATEMENT ANALYSIS UNIT 12 Analysing financial statements involves evaluating three characteristics of a company: 1. its liquidity 2. its profitability.

Hospital Corporation of America Rovi Das ACG

Financial Statement Analysis

Financial Statement Analysis

- Brijesh Pitroda. The analysis of a Business' Health starts with Financial Statement Analysis.

Financial Statement Analysis

$$ Entrepreneurial Finance, 5th Edition Adelman and Marks Pearson Higher Education ©2010 by Pearson Education, Inc. Upper Saddle River, NJ Chapter.

ANALYSIS OF FINANCIAL STATEMENTS Using Ratios Presented by the Arkansas Securities Department.

Demonstration Problem

14-1 Financial Statement Analysis Chapter 14 Electronic Presentation by Douglas Cloud Pepperdine University.

1)What is Amazon.com?What is Amazon.com? 2)What does Amazon sell?What does Amazon sell? Main categories of products How products appears in the financial.

Chapter 15 Financial Statement Analysis. Learning Objectives 1.Explain how financial statements are used to analyze a business 2.Perform a horizontal.

Annual Report Corning Incorporation John Harkins ACG 2021 Section 002.

Chapter 9: Financial Statement Analysis

Evaluating Cash Flow 1. Key questions for cash flow statement analysis How did this year’s cash flow impact the company’s:  Credit profile?  Liquidity?

Evaluating a Firm’s Financial Performance Evaluating a Firm’s Financial Performance , Prentice Hall, Inc.

Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Analyzing Financial Statements Chapter 14.

Chapter 14.  To make informed decisions about a company  Generally based on comparative financial data ◦ From one year to the next ◦ With a competing.

Essential Standard 4.00 Understanding the role of finance in business. 1.

Chapter 2 Financial Ratio Analysis. 2-2 Example 2.1 Problem  Rylan Enterprises has 5 million shares outstanding.  The market price per share is $22.

Financial Statement Analysis. Limitations of Financial Statement Analysis Differences in accounting methods between companies sometimes make comparisons.

Analysis of Financial Statements. Learning Objectives  Understand the purpose of financial statement analysis.  Perform a vertical analysis of a company’s.

Analyzing Financial Statements Chapter 14 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.

Analyzing Financial Statements Chapter 13 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.

Chapter Thirteen Financial Statement Analysis McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

CHAPTER 13 PowerPoint Author: LuAnn Bean, Ph.D., CPA, CIA, CFE Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution.

Fourth Edition 1 Financial Statement Analysis. Fourth Edition 2 Outline 1.Financial statements 1.Income statement and margin analysis 2.Ratio analysis.

1 Chapter 03 Analyzing Financial Statements McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

O By : David Chamberlain, Dan Clark, & Audra Lenczowski

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

Chapter 14 © The McGraw-Hill Companies, Inc., 2007 McGraw-Hill /Irwin “How Well Am I Doing?” Financial Statement Analysis.

Chapter 15 Financial Statement Analysis. Introduction How can we determine:  The ability of an organization to pay loans?  Whether we are earning a.

Copyright © 2007 Prentice-Hall. All rights reserved 1 Financial Statement Analysis Chapter 13.

Company Name Stock Trading Symbol. Company History Founder: Incorporation Date: IPO Date: Initial Sales Price: Current Sales Price:

“How Well Am I Doing?” Financial Statement Analysis Chapter 17.

McGraw-Hill/Irwin © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. Financial Statement Analysis CHAPTER 13.

© 2014 Cengage Learning. All Rights Reserved.

Tyler Hand , Enrique Cruz, Skye Galley

Financial Statement Analysis

Demonstration Problem

Financial Statement Analysis

Analyze financial indicators and ratios to make business decisions.

Financial Analysis – Part 2

Financial Statement Analysis

Financial statement analysis and interpretation

T I M C O K By: Amanda D. Barlow.

Financial Analysis & Ratios

إعداد القوائم المالية Preparation of Financial Statements

FINANCIAL STATEMENT ANALYSIS

Analyze financial indicators and ratios to make business decisions.

Analyzing Financial Statements

© 2014 Cengage Learning. All Rights Reserved.

Analysis of Financial Statements Beverly Ann P. Nombrado MBA - BA.

Presentation transcript:

PRESENTED BY: MATTHEW PETRELLA MCKESSON CORP. FINANCIAL ANALYSIS

MCKESSON CORP. COMPANY PROFILE Founded in 1833 and headquartered in San Francisco, CA. In the “drugs wholesale” industry with 37,700 full-time employees. Largest pharmaceutical distributor in North America. Nation’s leading health care IT company. Software and hardware technology installed in over 70% of the nation’s hospitals. Publically traded on the NYSE under the symbol MCK.

COMMON SIZE BALANCE SHEET ASSETS (ALL FIGURES IN MILLIONS)

COMMON SIZE BALANCE SHEET LIABILITIES & STOCKHOLDERS’ EQUITY (ALL FIGURES IN MILLIONS)

BALANCE SHEET — VERTICAL ANALYSIS ASSETS

BALANCE SHEET — VERTICAL ANALYSIS LIABILITIES & STOCKHOLDERS’ EQUITY

BALANCE SHEET — HORIZONTAL ANALYSIS ASSETS

BALANCE SHEET — HORIZONTAL ANALYSIS LIABILITIES & STOCKHOLDERS’ EQUITY

COMMON SIZE INCOME STATEMENT (ALL FIGURES IN MILLIONS)

INCOME STATEMENT VERTICAL ANALYSIS

INCOME STATEMENT HORIZONTAL ANALYSIS

PROFITABILITY ANALYSIS

LIQUIDITY ANALYSIS

DEBT ANALYSIS

INVESTOR ANALYSIS

MCKESSON CORP. FINAL ANALYSIS’S OPINION The largest player in its industry. Currently in the process of a major share buy-back program, raising EPS and share price. Company is highly leveraged with a debt-to-equity ratio of 3.84 and a debt ratio of 0.79 compared to Henry Schein, Inc. with 0.67 and 0.40, respectively. Despite high debt, there is little risk of bankruptcy with a z- score of Share price has a steady year-to-year growth of 20% in 2011 & 9.55% in 2012 in addition to a steady dividend.

MCKESSON CORP. FINAL ANALYSIS’S OPINION Recommendation: Strong Buy : McKesson’s dominant market share. Anticipate growth in revenues, EPS, and share price. Should have an improved revenue mix comprised of higher- margin generic drugs. Major Risks : Possible loss of major accounts. Slowing trend in pharmaceutical growth. Unfavorable regulatory changes.