Using the financial statements for HealthSouth Corp for the quarter ending 6/30/2002, or use the...
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Using the financial statements for HealthSouth Corp for the quarter ending 6/30/2002, or use the current financial statements for either Microsoft or Facebook. Choose your primary ratio and post your analysis.
2 Calculate several ratiosI would suggest at least one from each of the categories (profitability, liquidity, solvency, and activity/efficiency) from chapter 4 (chapter 11 in Marshall) in the text plus at least one ratio that you have found somewhere else or even made up. You should examine these ratios over a 4 year period (No need to look at every quarter). For example you might look at quarter 2 every year for 4 yearsincluding the quarter that I have chosen. Once you are used to looking up financial statements--if you do this strategically you should be able to examine 4 years of data by looking at only two separate years of financial statements. Please do not discuss all of these ratios. Your goal in calculating a number of ratios is to increase your chances of finding a ratio that is interesting and important.
INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions
3 Months Ended
6 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Revenue
Product
$ 17,926
$ 18,273
$ 32,224
$ 33,241
Service and other
10,992
7,553
21,232
14,513
Total revenue
28,918
25,826
53,456
47,754
Cost of revenue
Product
5,498
5,378
8,478
8,959
Service and other
5,566
4,523
10,864
8,786
Total cost of revenue
11,064
9,901
19,342
17,745
Gross margin
17,854
15,925
34,114
30,009
Research and development
3,504
3,062
7,078
6,168
Sales and marketing
4,562
4,079
8,374
7,297
General and administrative
1,109
879
2,275
1,924
Operating income
8,679
7,905
16,387
14,620
Other income, net
490
117
766
229
Income before income taxes
9,169
8,022
17,153
14,849
Provision for income taxes
15,471
1,755
16,879
2,915
Net income (loss)
$ (6,302)
$ 6,267
$ 274
$ 11,934
Earnings (loss) per share:
Basic
$ (0.82)
$ 0.81
$ 0.04
$ 1.54
Diluted
$ (0.82)
$ 0.80
$ 0.04
$ 1.52
Weighted average shares outstanding:
Basic
7,710
7,755
7,709
7,772
Diluted
7,710
7,830
7,799
7,853
Cash dividends declared per common share
$ 0.42
$ 0.39
$ 0.84
$ 0.78
BALANCE SHEETS - USD ($) $ in Millions
Dec. 31, 2017
Jun. 30, 2017
Current assets:
Cash and cash equivalents
$ 12,859
$ 7,663
Short-term investments (including securities loaned of $4,247 and $3,694)
129,921
125,318
Total cash, cash equivalents, and short-term investments
142,780
132,981
Accounts receivable, net of allowance for doubtful accounts of $337 and $345
18,428
22,431
Inventories
2,003
2,181
Other
4,422
5,103
Total current assets
167,633
162,696
Property and equipment, net of accumulated depreciation of $26,849 and $24,179
26,304
23,734
Operating lease right-of-use assets
6,749
6,555
Equity and other investments
3,961
6,023
Goodwill
35,355
35,122
Intangible assets, net
9,034
10,106
Other long-term assets
6,967
6,076
Total assets
256,003
250,312
Current liabilities:
Accounts payable
7,850
7,390
Short-term debt
12,466
9,072
Current portion of long-term debt
3,446
1,049
Accrued compensation
4,427
5,819
Short-term income taxes
788
718
Short-term unearned revenue
21,309
24,013
Securities lending payable
26
97
Other
7,787
7,587
Total current liabilities
58,099
55,745
Long-term debt
73,348
76,073
Long-term income taxes
30,050
13,485
Long-term unearned revenue
2,500
2,643
Deferred income taxes
3,186
5,734
Operating lease liabilities
5,640
5,372
Other long-term liabilities
4,820
3,549
Total liabilities
177,643
162,601
Commitments and contingencies
Stockholders equity:
Common stock and paid-in capital shares authorized 24,000; outstanding 7,705 and 7,708
70,192
69,315
Retained earnings
8,567
17,769
Accumulated other comprehensive income (loss)
(399)
627
Total stockholders equity
78,360
87,711
Total liabilities and stockholders' equity
$ 256,003
$ 250,312
Answer & Explanation
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