Financial Analysis of the Greek Private Health Sector over the Last Decade (2002-2012)

Abstract

The purpose of this study is to perform a comprehensive financial statement analysis for Hygeia, the largest Private Health Organization in Greece. In this regard, we employ a variety of theoretically advanced approaches. For instance, DuPont analysis based on the decomposition scheme of Nissim and Penman (2001), shows that the capital structure decisions eroded shareholder profits, and specifically their impact was pronounced after the outbreak of the global financial crisis. Considering the unique operating characteristics of the health sector and the hostile macroeconomic environment, working capital management performed generally well, but with a considerable margin for further improvements, if more responsible policies are followed. What is more, thorough analysis revealed that in the last years operating returns were consistently negative and operating cash return were unable to cover effective interest fixed costs. If the external environment does change favorably and if more importantly, the business model of Hygeia does not focus on significant operating improvements, the long term prospect of the organization may be questioned.

Solvency Evaluation, Comparing Traditional Financial Situation Assessment Methods with Information from Cash Flow Statements, Using Data from Insolvent Companies in the Republic of Latvia

“…According to authors, important insolvency forecasting indicator is an assets efficiency level as evidenced by the Loukopoulos G., Roupas T. in their research "Asset turnover is the second key factor that determines the performance of equity." (Loukopoulos and Roupas, 2014) so the authors chose to look at the ratio Net turnover/ Total assets. Solvency evaluation is often associated with capital structure analysis, however about the amount of debt on the balance sheet have different opinions " Modigliani and Miller (1958) are the first that have tentatively studied the impact of capital structure.…”

“…Both of these statements comparison can provide important information. It also stresses Loukopoulos and Roupas (2014) in their work "Financial Analysis of the Greek Private Health Sector Over the Last Decade (2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012)." The comparison between earnings and operating cash flows, informs us about the amount of the accrued profits and hence on the quality of accounting information.…”

Evaluation Financial Performance of Private Hospital by DuPont Financial Analysis Method

“…Bu çalışmada Borsa İstanbul'da işlem gören bir hastaneler grubunun 2015-2019 yılları arasındaki finansal performansını değerlendirmek amaçlanmıştır. Sağlık kurumlarında finansal performans değerlendirmesinde DuPont analizinden yararlanılmaktadır (Sheela ve Karthikeyan, 2012;Loukopoulos ve Roupas, 2014;Prajapati ve Danta, 2015;Turner vd., 2015;Çalışkan, 2015;Karadeniz ve Koşan, 2017;Noh vd., 2018;Creixans-Tenas ve Núria Arimany-Serrat 2018;Nurul vd., 2018;Erduru, 2018;Mali, 2020). Literatür incelendiğinde araştırma bulgularının ülke ortalamalarıyla karşılaştırıldığı bir çalışmaya ulaşılamamıştır.…”