Using the financial statements for HealthSouth Corp for the quarter ending 6/30/2002, or use the...

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Accounting

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

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