Acadia HealthCenter presentation

Prof. F. Kass
Term Project Submission Cover Sheet
Course
Section
Term
Deliverable #
ACCT4501
TD9_6736
Fall 2022
2
Connecting Theory to Practice – Firm Level Risk Analysis
Title of Deliverable
Company
Team Members
Acadia Healthcare Company, Inc.
1
2
3
4
Team Leader Certification
I hereby certify that:
1.
I am the appointed Manager for this deliverable.
2.
Each of my team members worked to 100% of the expectation on this project.
3.
If any team member did not work to expectation, I have indicated next to their name
(above) the percentage of the expectation they did work. (You must be able to explain any reduction in
the work.)
4.
No part of this submission was copied or otherwise plagiarized. All rules of academic
integrity have been adhered to.
Name
Signature
1. Based on your research of disaster preparedness for hospitals what are the three or
four types of disasters that you consider most probable and dangerous and why?
Acadia is a leading provider of behavioral healthcare services across the United States. As of
June 30, 2022, Acadia operated a network of 246 behavioral healthcare facilities in 39 states and Puerto
Rico. Given its geographic diversity, Acadia is subject to environmental risks associated with inclement
weather and natural disasters such as hurricanes, floods, and wildfires. In the annual report for 2021,
management once again refers to such risks “Some of our facilities are located in areas prone to
hurricanes or wildfires. Natural disasters have historically had a disruptive effect on the operations of
facilities and the patient populations in such areas. Our business activities could be significantly
disrupted by wildfires, hurricanes or other natural disasters, and our property insurance may not be
adequate to cover losses from such wildfires, storms, or other natural disasters.”1 The following events
are examples of this. Hurricane Dorian weakened patient volumes in some of the company’s North
Carolina and Florida facilities in September 2019, while wildfires in California in October 2019
necessitated the evacuation of three of the company’s facilities and dampened the patient volumes of
others. The company’s financial results for the third quarter of 2021 were adversely affected by
disruptions from Hurricane Ida in Louisiana, including the temporary evacuation of one facility.
Also, for the reason that with more than 22,500 employees serving approximately 70,000
patients daily, Acadia is subject to biological hazards. A pandemic, epidemic, or outbreak of an
infectious disease such as the coronavirus known as COVID-19 can reduce the public’s confidence in
healthcare facilities and negatively affect the company’s reputation. New patients may not seek care
from facilities involved or perceived to be involved in the care of patients with infectious diseases.
Further, this might cause a temporary shutdown or diversion of patients, by disrupting or delaying
production and delivery of pharmaceuticals and other medical supplies or by causing staffing shortages
in company’s facilities. Although Acadia have disaster plans in place and operate pursuant to infectious
1
https://acadiahealthcare.gcs-web.com/static-files/a236a975-6f02-437d-af96-32281d3d278d
disease protocols, the potential impact of a pandemic, epidemic or outbreak of an infectious disease
with respect to its markets or its facilities is difficult to predict.
2. Based on your research about your target company how do their disaster plans meet
the standards that you have learned about? Are they prepared for these disasters?
Healthcare providers and their suppliers must be compliant with “national emergency
preparedness requirements to ensure adequate planning for both natural and man-made disasters, and
coordination with federal, state, tribal, regional and local emergency preparedness systems.”2 These
are published by CMS (The Centers for Medicare & Medicaid Services) in the Federal Register, with
regulations stating that “Each provider and supplier will have its own set of Emergency Preparedness
regulations incorporated into its set of conditions or requirements for certification”… in order “to
participate in the Medicare or Medicaid program.”3 Having a disaster management plan in healthcare
is fundamental, not just for compliance, but for healthcare disaster preparedness.4
Acadia Healthcare is a comprehensive treatment network comprising 246 facilities across the
U.S. and Puerto Rico. Thus, any potential of business disruption which might occur due to
environmental risks poses a significant financial impact to Arcadia’s financial performance. According
to Arcadia’s Task Force on Climate-Related Financial Disclosures (TCFD), the Board of Directors and
senior management team oversee and actively manage and mitigate climate-change related and
environmental risks.5 These risk management topics are discussed on a cross-organizational scale,
reviewed as part of the overall sustainability-risk evaluation, and later become included into operations
decision-making processes.
2
https://www.cms.gov/Medicare/Provider-Enrollment-and-Certification/SurveyCertEmergPrep/Emergency-Prep-Rule
https://www.cms.gov/Medicare/Provider-Enrollment-and-Certification/SurveyCertEmergPrep/HealthCareProviderGuidance
4
https://www.cms.gov/Medicare/Provider-Enrollment-andCertification/SurveyCertEmergPrep/Downloads/SandC_EPChecklist_SA.pdf
5
https://www.acadiahealthcare.com/about/social-responsibility/ceo-update-on-covid-19-impact/
3
Since 2014, the Ebola Virus Disease (EVD), H1N1 pandemic, H3N2v in the United States, and
Zika Virus have reinforced the need for disease control, prevention, and preparedness.6 When COVID19 manifested as a public health crisis internationally, Arcadia health care providers faced a variety of
challenges, which included basic care and treatment of patients; segregation; infection control; waste
management; personal protective equipment (PPE) and more. Acadia employs more than 22,500
employees that provide multiple levels of care for various behavioral health and substance use disorders
and addictions. Continuing to perform essential functions and provide essential services during
outbreaks of infectious diseases was vital to Acadia’s ability to remain a viable entity during times of
increased threats. According to the 2021 Annual Report, an internal COVID-19 taskforce established
Infection Prevention and Control training for all staff members, heightened screening protocols and
implemented social distancing strategies.7 In compliance with state and federal regulations, visitation
has also been suspended at all of the facilities within Arcadia network.8 “We have developed additional
supply chain management processes, which includes extensive tracking and delivery of key personal
protective equipment (“PPE”) and supplies and sharing resources across all facilities”.
Therefore, based on the research of Acadia’s COVID-19 Response Initiatives and 2021 Annual
Report, it can be established that Acadia closely followed infectious disease protocols, as well as
recommendations and guidelines distributed by the Centers for Disease Control and Prevention (CDC),
and the World Health Organization (WHO).9 In addition, according to their website, Acadia’s corporate
quality and compliance teams, in conjunction with the chief medical officer, proactively monitored
federal, local and regional updates and communicated them efficiently to all facilities.
6
https://acadiahealthcare.gcs-web.com/financial-information/annual-reports
https://www.who.int/publications/i/item/WHO-2019-nCoV-HCF_assessment-Safe_environment-2020.1
8
https://www.acadiahealthcare.com/about/social-responsibility/covid-19-response-initiatives/
9
https://www.acadiahealthcare.com/about/social-responsibility/covid-19-response-initiatives/
7
3. Based on your research about your target company, and their hospitals, how did they
manage during COVID? Did they meet their expectations or standards that were set by the
various agencies? Explain.
“We could experience supply chain disruptions and significant price increases in equipment,
pharmaceuticals and medical supplies, particularly PPE”.10 Because of the pandemic, it caused supply
chain issues for many businesses including but not limited to healthcare. Considering the fact that
Acadia Healthcare has more than 22,500 employees serving approximately 70,000 patients daily, a
disruption in the supply chain will have a large effect on their operations because if Acadia Healthcare
if unable to get the materials that they need, they will be unable to service any current or new patients,
and this will adversely affect their income. Acadia Healthcare has taken steps to reduce supply chain
risk by “[securing] contracts with additional distributors for supplies”.11 By having a contract in place
with different vendors whom Acadia Healthcare views as a reliable vendor, Acadia Healthcare can
have some sort of guarantee that the supplies that they need will arrive in a timely manner. By having
contracts in place to help mitigate the risk of supply chain disruptions, the company is also able to
prevent sudden increase in the cost of their supplies. This is because when Acadia Healthcare is short
on supplies and need the supplies within a day or two, it will because the company to purchase supplies
not matter what the price is since they don’t have the time to find another vendor with a better price or
that is the only vendor who has the supplies that they need at the moment. Acadia Healthcare has also
followed many of the “criteria established by the CDC” such as “restricting or suspending visitor
access, screening patients and staff who enter [their] facilities”.12 Acadia Healthcare has also
“implemented plans to vaccinate” all of their employees.13 By having many precautions in place, the
company can ensure that there will be less cases of covid happening in their facility. This will benefit
10
https://acadiahealthcare.gcs-web.com/static-files/a236a975-6f02-437d-af96-32281d3d278d (p.4)
https://acadiahealthcare.gcs-web.com/static-files/a236a975-6f02-437d-af96-32281d3d278d (p.4)
12
https://acadiahealthcare.gcs-web.com/static-files/a236a975-6f02-437d-af96-32281d3d278d (p.4)
13
https://acadiahealthcare.gcs-web.com/static-files/a236a975-6f02-437d-af96-32281d3d278d (p.4)
11
Acadia Healthcare since they have 22,500 employees and if there is confirmed cases, it will spread to
their other employees quickly which would in turn cause an even greater shortage of workers.
“The Acadia facilities averaged 4.8 violations per inspection, 60% higher than the 3 violations
per inspection averaged by the UHS facilities”.14 Acadia Healthcare has not met the expectations that
were set by various agencies. On average Acadia Healthcare has more violations compared to other
healthcare organizations and these violations are often “involving patient safety or care deficiencies”
problems. Because of these violations, Acadia Healthcare had to deal with many “criminal and civil
government investigations”. “A lot of the problems Stanford sees boil down to one thing: staffing. State
law requires one staff member for every six patients during the day. At night, the ratio is one per eight.
But that was not always happening at Piney Ridge”.15 Another area where Acadia Healthcare had not
meet the expectations of the various agencies is involving the ratio of staffs to patients. Often, Acadia
Healthcare is short of staff. This is mainly a result of the pandemic where many employees are testing
positive causing them to have to be in isolation for a certain period of time. While these employees are
in isolation, Acadia Healthcare would need to find new employees to temporarily do the job of the
previous employees. However, considering the fact that there is a national shortage of healthcare
professionals, it makes it difficult for Acadia Healthcare to hire enough employees to prevent
understaffing.
4. What can your target company do to adjust their policies and practices going
forward? Why is disaster preparedness a risk issue?
As we noted before, Acadia Healthcare Company has concentrations of different types of
facilities in different states and regions, and in some of them there are cases of natural disasters. In
addition, there is still the risk of a seasonal outbreak of COVID which can lead to unforeseen risks.
14
(http://www.mavalue.org/research/acadiahealthcare/#:~:text=The%20Acadia%20facilities%20averaged%204.8,and%20staffing%20problems%20(quadruple)
15
http://www.psychcrime.org/news/index.php?vd=3447&t=Acadia+Healthcare%3A+Investigation+Reveals+Years+of+Lic
ensing+Issues+at+Piney+Ridge+Treatment+Center
The company institutions must be prepared to take core priority action to be ready to address the
challenges of a crisis. There are advantages to having a plan in place to execute in the case of an
emergency. Furthermore, an emergency plan improves worker comprehension of safety and indicates
management’s commitment to the problem. You may prepare for unpredictable circumstances this way.
Confusion may arise when presented with a crisis due to the need to react quickly despite a lack of
time, knowledge, and skilled personnel.
Acadia Healthcare must be financially secure to deliver life-saving emergency medical services
to the community. Hospitals depend on a complex financial framework with several revenue sources.
Acadia Healthcare might benefit from retail sales, research funding, financial donations, and
investment returns. Acadia Hospitals must generate income from several sources, including clients,
stakeholders, and government subsidies, to provide important healthcare services to the local people.
Operating revenue is the money earned by a healthcare facility from providing actual patient care.
Acadia Healthcare might benefit from retail sales, research funding, financial donations, and
investment returns.
The impacts of panic and financial hardship may be reduced by being prepared for a disaster.
Everyone should know about storm shelter sites and the community’s fire safety measures. The annual
lump sum payment for disaster relief, rehabilitation, rebuilding, and other works or services cannot
exceed 5% of the fiscal year’s estimated revenue from regular sources. Hospitals must utilize their
catastrophe fund in the event of a catastrophic tragedy. In the case of a natural disaster, Acadia medical
institutions in certain places will be asked to assume extra responsibility. To help with this, the
function-based budgeting approach should be assessed and perhaps improved.
5. Choose one hospital facility that is managed by your target company. Were there
comments, good or bad, about this facility? Should these comments be considered by an
auditor? Why?
As an operator of inpatient behavioral health hospitals, Acadia faces high social risk. Any
incident, such as a patient fatality or a patient not receiving appropriate care at one of Acadia’s facilities,
can result in increased regulatory burdens, government investigations, and negative publicity. We
regret to note that the company we have chosen has been involved in a several scandals. In 2019,
Acadia’s New Mexico Youth Treatment Center closed after allegations of abuse, multiple lawsuits, and
loss of state regulatory certification. In the month before to its closure, seven lawsuits were filed against
the Desert Hills of New Mexico facility in Albuquerque and its parent company alleging that the
company had failed to protect its customers from physical and sexual abuse by its employees and other
patients.16 That same year, the United States Attorney’s Office announced a $17 million fraud
settlement with Acadia Healthcare in West Virginia, the largest healthcare fraud settlement in the
state’s history. Under the settlement agreement, Acadia, which operated the treatment centers since
February 2015, agreed to pay $17 million to resolve allegations of a billing scheme that defrauded
Medicaid of $8.5 million between January 1, 2012, and July 31, 2018. 17 In 2021, three current and
former executives brought a class action lawsuit against Acadia Healthcare stating that the company
misled investors. The action, which dates back to 2018, alleges the defendants misled investors after
stock prices dropped as a result of understaffing and other issues.18 Givens Acadia’s track record, chairs
of the Minnesota Nurses Association (MNA), which represents 22,000 nurses, 80 percent of all bedside
hospital nurses in Minnesota, are deeply concerned with Minnesota Health Fairview’s decision to
partner with a profit-driven corporation, Acadia Healthcare, which will have 85 percent ownership of
this new venture. In a letter to Commissioner Jan Malcolm dated June 27, 2022, they indicate that
“Nurses believe that healthcare in Minnesota should put patients before profits. We believe that safe
16
https://www.nashvillepost.com/acadia-facility-closes-amid-abuse-allegations/article_707ab44b-adbf-5af8-bf6a5b48ac61127d.html
17
https://www.justice.gov/usao-sdwv/pr/united-states-attorney-announces-17-million-healthcare-fraud-settlement
18

Lawsuit Alleging Acadia Misled Investors Moves Forward

patient care should be the top priority in Minnesota hospitals, not the profits of hospital executives or
corporate bottom lines and results for shareholders.”19
As we see, the Company is subject to medical malpractice, overpayment, breach of contract,
violation of securities laws, tort claims and other legal actions in the ordinary course of business. We
are deeply convinced that comments like the letter from the Minnesota Nurse Association should be
considered by auditors because some of the company’s actions involved large claims, as well as
significant defense costs.
19
https://www.health.state.mn.us/data/economics/moratorium/fairviewacadia/docs/mnaletter.pdf
Deliverable Four: Communicating Results (PowerPoint Presentation)
The main goal of deliverable four is to communicate the issues you discovered by preparing and
presenting your findings to the class by making a recorded PowerPoint presentation. Deliverable
four is summary statement of deliverables one, two and three. Students will continue to work in
assigned groups to complete deliverable four and will be graded as a group.
Deliverable Four Objectives:
1. Demonstrate your understanding how to contribute to a collaborative PowerPoint presentation.
2. Gain an understanding how to record narrative.
3. Gain an understanding of the importance in communicating problems and findings to help users
of accounting information make business decisions.
4. Demonstrate good grammar, formatting, and organization.
Deliverable Four Requirements:
1.
2.
3.
4.
5.
Collaborate.
Present findings.
Record a sound bite.
Rehearse the presentation.
The ’Manager’ for this deliverable uploads the document via Blackboard.
Requirement #1: Collaborate
Students will continue to collaborate within their assigned groups to complete this deliverable,
within their assigned groups to complete deliverable four, and the work product will be group
graded.
Requirement #2: Present Findings
The partner in charge of the audit has been told the manager that he must fly out to meet another
client. S/He needs to see the risk analysis the team has done on this hospital corporation, and s/he
doesn’t have much time.
S/He would like for your team to put together a short PowerPoint presentation summarizing your
work it should:
1
2
3
4
5
6
Start with one slide introducing the client. Just a few basics.
Contain the highlights of you vertical and horizontal analysis. Is there anything that stands
out as unusual that might indicate an audit work.?
Is there anything in the ration analysis that might indicate an audit risk?
Based on your analysis is there anything in the MD&A that seems off?
Based on your analysis of the company’s disaster preparedness and their response to COVID
is there anything the partner should know?
Based on your research about the company’s hospital in the news and/or patient comments is
there anything outstanding that the partner should know?
7
8
Is this client average audit risk? Low risk? High risk? Why? (In a nutshell)
Should this client be brought on, if new or retained?
Your group will present summarizing results of any information/analysis your group found most
interesting. The key to success in this deliverable is to use less words and more visuals. The
reason that you are recording audio is to explain your slides, not to read word for word a
paragraph of information. Presenting pictures and/or graphs, with limited text should be your
goal. Text that is mall and difficult to read is not optimal. A lot of text on a slide is also not
optimal.
Since you are presenting to a partner the presentations should be professional. Flashbangs are not
necessary but plain white backgrounds are also not appropriate.
Th slide show should move along. The partner should not be expected t have to move the slides
on his own or start the sound every slide. There are ways to do this. Check with PowerPoint
gurus in the library or online if you don’t know how.
Requirement #3: Record a Sound Bite
Each member of the group will record an approximately 90 second sound bite explaining the
group’s findings. Group members control who presents what information. If a member of your
group is unable to speak, someone else may present on that person’s behalf. The overall goal is to
develop the ability to present an interesting finding as concisely as possible. If four members are
in a group, that means the entire presentation should be no more than six minutes.
If you do not know how to make a recorded presentation on a PowerPoint, the following videos
are instructive.
Video examples of narrating in PowerPoint:
•
How to Record Narration for a PowerPoint Presentation For Dummies:

•
Microsoft Office Support:
https://support.office.com/en-us/article/record-a-slide-show-with-narration-and-slide-timings0b9502c6-5f6c-40ae-b1e7-e47d8741161c
Requirement #4: Rehearse the Presentation
This is a critical part that cannot be overlooked. Rehearse the presentation several times to make
sure it flows well and is within time limits. It is imperative that you be understood when others
are listening. You may want to consider making a recording and have your manager or someone
else view and listen it who is not used to hearing you speak. That person must be able to
understand everything you say and find it interesting. Therefore, make sure that your audio
capability is working correctly. Ultimately, if the instructor cannot understand you, it will be
difficult to assess this part of your grade. You can probably never rehearse enough.
Requirement #5: Upload Document for Grading
Overall, the presentation should be between six to eight slides. Try not to place a bunch of text on
the slide and then read it word for word. People can read. What the audience wants see and hear
is what you have to say and how you present it. Use graphs, illustrations, pictures to get your
point across. It is normally more effective. Grammar, Formatting and Organization is a skill
which should be demonstrated by accountants for all work. Therefore, it is part of the grade. Only
PowerPoint files will be accepted. Do not upload any other file types.
As with the other deliverables, this is a group graded collaborative effort. Each group member
works with the leader to organize the presentation. As discussed in the grading section for
deliverables one, two, and three it is inevitable that you will share ideas and see other member’s
work. You should not copy other groupk’s work without acknowledging them. If you do not
acknowledge them, it is considered plagiarism. Each paper submitted should reflect a significant
work product that your group created.
Late submissions lose 50% credit if submitted within one week after the due date. After one week
past the due date, no credit will be given. Note that this deliverable still has to be completed to
advance to the next deliverable. If it is not completed, no further credit will be given for the term
project.
Remember to put the ‘Group Submission Sheet’, signed by the manager, as your first slide.
See Appendix A, Grading Rubric for Deliverable Four.
_Deliverable_Four_ProcessIf you have further questions about Deliverable #4, check out the FAQ
page under Additional Questions Concerning Deliverable Four: PowerPoint Presentation.
Requirement #6: Upload Document for Discussion
Upload your PowerPoint to the Discussion Board. Students are required to make at least three
substantial comments on PowerPoints uploaded by other teams.
Prof. F. Kass
Term Project Submission Cover Sheet
Course
Section
Term
Deliverable #
ACCT4501
TD9_6736
Fall 2022
2
Connecting Theory to Practice – Firm Level Risk Analysis
Title of Deliverable
Company
Team Members
Acadia Healthcare Company, Inc.
1
2
3
4
Team Leader Certification
I hereby certify that:
1.
I am the appointed Manager for this deliverable.
2.
Each of my team members worked to 100% of the expectation on this project.
3.
If any team member did not work to expectation, I have indicated next to their name
(above) the percentage of the expectation they did work. (You must be able to explain any reduction in
the work.)
4.
No part of this submission was copied or otherwise plagiarized. All rules of academic
integrity have been adhered to.
Name
Signature
We suppose that of all the risks that management discloses, the human capital risks could
most adversely affect the income statement, balance sheet, and cash flow statement. Management
notes in the 2021 Annual Report to Stockholders that the company’s “facilities face competition for
staffing that may increase our labor costs and reduce our profitability” (p. 15). We would like to
emphasize that wage costs are the most significant operating expense for Acadia, which, according to
vertical analysis, account for 55.09%, 55.14%, 55.24% and 53.74% of the total net revenue for 2018,
2019, 2020 and 2021, respectively. The development of the simple linear regression model allowed
us to predict the projected wage costs for 2022 that amounted to $1,325,987K. Next, we decided to
find out what would happen in 2022 if all other data in the income statement remain the same, equal
to the data for 2021, and only the amount of wage costs will change to $1,325,987K instead of
$1,243,804K increasing by 6.6% and will amount to 57.3% of the total net revenue. As we can see,
such adjustments led to changes not only in the income statement, but also in cash flow and balance
sheet. On the income statement, an increase in wage costs would reduce net income by 43.1%. Net
income will account for 4.7% of total net revenue for 2022, down 3.6% from 2021. On the cash flow,
changes in net income would decrease net cash provided by operating activities by 22%. On the
balance sheet, these changes decrease cash and cash equivalents by 61.42% and increase accumulated
deficit by 68.63%. As we can see, the changes described above led
to changes in all ratios without exception. The current liquidity ratio
is 1.02 times, which is 0.2 less than in 2021. This ratio indicates that
the company has $1.02 of current assets for every $1 of current
liabilities. The receivable turnover ratio is 8.23 times, which is less
than in 2021 but still demonstrates a very good ability to collect cash
from customers. The debt to total assets ratio is 0.47 times, which is
slightly more than in 2021 and shows that Acadia is performing well
and depending less on debt. In other words, this ratio means the company has $1 in total liabilities to
more than $2 of available total assets to pay that debt. Debt service
coverage ratio is 0.72 times that means that there is only sufficient net
operating income to cover 72% of annual debt payments. The gross profit
margin shows that the company receives 38.8% of the profit after paying the
cost of revenue, while it was 42.34% in 2021. The profit margin ratio has
halved compared to 2021 and amounted to 4.69%. The return on assets ratio
(ROA) shows that each dollar invested in assets by Acadia generated 2.29
cents of net income, down 1.09 cents from the 2021 ratio. The asset
turnover ratio shows that for every dollar of assets, the company
generated $0.49 in sales, up 8 cents from 2021 but half the healthcare
industry average of $0.89, according to CSIMarket
(https://csimarket.com/screening/index.php?s=at). Everything above
confirms that the human capital risk most adversely affects the income
statement, balance sheet, cash flow statement, and all ratios without
exception.
We would like to note that in our case, the concept of equipment refers specifically to
property, plant and equipment which are fixed assets. In the company’s income statement, we find
such a cost item as supply, which includes, among other things, the cost of medications. Supply is
part of the cost of revenue and averages 4.16% of the total net revenue. Increasing its cost reduces the
following ratios: receivable turnover, debt service coverage, gross profit margin, profit margin, and
return on assets; and increases inventory turnover, and asset turnover. A 50% increase in the supply
cost results in a 2% decrease in the gross profit margin and the profit margin. Only two ratios not
related to the accounts of the income statement remained unchanged. They are the current ratio and
debt to total assets.
Management notes in the 2021 Annual Report to Stockholders that “During 2020 and 2021,
COVID-19 resulted in fewer referrals to our facilities and lower voluntary admissions as individuals
were less inclined to leave their homes and seek treatment” (page 18). From this statement we can
conclude that the management is saying that their revenues are decreasing however that does not
seem to be the case. If we look at the income statement, we can see that the company has a net
income of 102.6 million in 2022 and 195 million in 2021 and had a net loss in 2020. If we take all
these numbers into consideration, we can see that the company is still doing well despite the risk that
the company is facing with regards to COVID-19. Although the company is profitable in 2021 and
2022, when we look at the cash flow, we can see that the amount of cash the company has has
decreased significantly but the decrease was a result of cash flow from financing activities. The
percentage change for cash flow from financing from 2021 to 2022 was up 3,301% compared to 18.44% in 2020 to 2021 and -7.91 in 2019 to 2021. This shows that the company has a large debt
expense/relying on debt a lot which is the cause for the decrease in cash. Although the manager does
mention that the company has financial risk, I believe that the reason why the manger decided to
include that statement in the 10k is to use COVID-19 to make people think that the company isn’t
doing so well with its current operations so it’s holdings in cash decreased however, the reality that
the manager is trying to cover up is that it isn’t using managing it’s cash efficiently and it also isn’t
balancing it’s use of equity and debt.
Prof. F. Kass
Term Project Submission Cover Sheet
Course
Section
Term
ACCT4501
TD9_6736
Fall 2022
Deliverable #
Title of Deliverable
Company
1
Create Excel Spreadsheet, Financial Analysis
Acadia Healthcare Company, Inc.
Team Members
1
2
3
4
Sohaib Ali
Oxana Shifrina
Maggie Wang
Gulnoz Zakirova
Team Leader Certification
I hereby certify that:
1.
I am the appointed Manager for this deliverable.
2.
Each of my team members worked to 100% of the expectation
on this project.
3.
If any team member did not work to expectation, I have
indicated next to their name (above) the percentage of the
expectation they did work. (You must be able to explain any
reduction in the work.)
4.
No part of this submission was copied or otherwise
plagiarized. All rules of academic integrity have been adhered to.
Name
Signature
Horizontal Analysis
Vertical Analysis
Percentage Change
(Current am.- Previous am)/Previous am. *100
Percentage of the Total Assets amount
Acadia Healthcare Company, Inc.
CONSOLIDATED BALANCE SHEETS
For the Years Ended December 31
(In thousands, except share and per share amounts)
2017
2018
2019
2020
2021
2018
2019
2020
2021
2017
2018
2019
2020
Balance Sheet Changes Horizontal
Analysis
2021
ASSETS
Balance Sheet Vertical Analysis
Total current assets
Total current assets
Total long-term assets
Total current liabilities
Total long-term liabilities
Total long-term assets
Total current liabilities
Total long-term liabilities
100.00
92.70
92.66
92.12
89.62
90.00
400.00
365.39
Current assets:
$
Cash and cash equivalents
Accounts receivable, net
(64.66)
1.05
0.82
1.45
5.83
2.81
296,925
67,290
318,087
288,863
273,551
281,332
7.13
(9.19)
(5.30)
2.84
4.62
5.15
4.20
4.21
5.90
27,320
–
$
50,510
30,802
–
$
99,535
17,343
–
$
378,697
19,480
–
$
133,813
22,292
15,808
(24.94)
12.75
–
(43.70)
–
97.06
280.47
12.32
–
14.44
–
0.43
–
0.50
–
0.25
–
0.30
–
0.47
0.33
10,000
10,000
10,000
12,000
12,000
–
–
20.00
–
0.16
0.16
0.15
0.18
0.25
17,588
2,049
3,030
6,792
10,807
(88.35)
47.88
124.16
59.11
0.27
0.03
0.04
0.10
0.23
21,427
4,787
15,056
9,028
2,129
19,205
5,055
2,380
10,340
1,989
10,661
4,075
4,786
13,723
1,349
10,025
4,851
897
5,818
1,469
10,786
4,786
1,523
1,884
(10.37)
5.60
(84.19)
14.53
(6.58)
(44.49)
(19.39)
101.09
32.72
(32.18)
(5.97)
19.04
(81.26)
(57.60)
8.90
7.59
(1.34)
69.79
(100.00)
28.25
0.33
0.07
0.23
0.14
0.03
0.31
0.08
0.04
0.17
0.03
0.15
0.06
0.07
0.20
0.02
0.15
0.07
0.01
0.09
0.02
0.23
0.10
0.03
0.04
80.00
350.00
70.00
300.00
61.17
Persentage
Prepaid expenses
Assets held for sale
Workers’ compensation
deposits – current portion
Insurance receivable
– current portion
Other receivables
Inventory
Income taxes receivable
Cost report receivable
Other
250.00
107,335
Other current assets
81,820
–
Current assets held for sale
64,967
–
61,332
88,846
1,809,815
79,886
(23.77)
–
–
(20.60)
(5.60)
30.25
–
1,937.02
(100.00)
1.67
–
1.33
–
0.94
0.94
1.68
1.29
27.85
–
182.19
Persentage
200.00
471,550
450,417
542,211
2,523,395
495,031
(4.48)
20.38
365.39
(80.38)
7.34
7.30
7.88
38.83
10.38
Property, plant and equipment, net
3,048,130
3,107,766
1,499,587
1,622,896
1,771,159
1.96
(51.75)
8.22
9.14
47.45
50.35
21.80
24.97
37.15
Goodwill
2,751,174
2,396,412
2,085,104
2,105,264
2,199,937
(12.89)
(12.99)
0.97
4.50
42.82
38.82
30.31
32.39
46.14
87,348
88,990
68,826
68,535
70,145
1.88
(22.66)
(0.42)
2.35
1.36
1.44
1.00
1.05
1.47
Deferred tax assets
3,731
3,468
3,339
3,209
3,080
(7.05)
(3.72)
(3.89)
(4.02)
0.06
0.06
0.05
0.05
0.06
Operating lease right-of-use assets
12,997
60,524
97,795
96,937
133,761
365.68
61.58
(0.88)
37.99
0.20
0.98
1.42
1.49
2.81
Other assets
49,572
64,927
55,106
79,126
94,965
30.98
(15.13)
43.59
20.02
0.77
1.05
0.80
1.22
1.99
–
–
(100.00)
–
–
–
36.74
–
–
5,952,952
5,722,087
6,336,931
3,975,967
4,273,047
(3.88)
10.75
(37.26)
7.47
92.66
92.70
92.12
61.17
89.62
$ 6,424,502
–
$ 6,172,504
$ 6,879,142
$ 6,499,362
$ 4,768,078
(3.92)
11.45
(5.52)
(26.64)
100
100
100
100
100
$
$
$
Noncurrent assets held for sale
Total long-term assets
TOTAL ASSETS
–
2,527,174
–
–
LIABILITIES AND SHAREHOLDERS’ EQUITY/(DEFICIT)
Current liabilities:
Current portion of long-term debt $
18,594
(2.06)
28.05
251.38
(87.88)
0.54
0.55
0.63
2.36
0.39
Accounts payable
102,299
117,740
90,257
87,815
98,575
15.09
(23.34)
(2.71)
12.25
1.59
1.91
1.31
1.35
2.07
Accrued salaries and benefits
99,047
113,299
93,595
124,912
137,845
14.39
(17.39)
33.46
10.35
1.54
1.84
1.36
1.92
2.89
–
–
18,119
18,916
23,348
–
–
4.40
23.43
–
–
0.26
0.29
0.49
141,213
151,226
69,234
178,453
126,499
7.09
(54.22)
157.75
(29.11)
2.20
2.45
1.01
2.75
2.65
–
–
–
84,584
–
–
–
–
(100.00)
–
–
–
1.30
Current portion of operating lease liabilities
Other accrued liabilities
Derivative instrument liabilities
34,830
$
34,112
43,679
153,478
–
–
–
148,692
660,027
–
–
–
343.89
(100.00)
–
–
2.16
10.16
–
Total current liabilities
377,389
416,377
463,576
1,308,185
404,861
10.33
11.34
182.19
(69.05)
5.87
6.75
6.74
20.13
8.49
Long-term debt
3,205,058
3,159,375
3,105,420
2,968,948
1,478,626
(1.43)
(1.71)
(4.39)
(50.20)
49.89
51.18
45.14
45.68
31.01
Deferred tax liabilities
80,333
80,372
22,820
50,017
74,368
0.05
(71.61)
119.18
48.69
1.25
1.30
0.33
0.77
1.56
Operating lease liabilities
–
–
85,643
84,029
116,841
–
–
(1.88)
39.05
–
–
1.24
1.29
2.45
Noncurrent derivative instrument liabilities
–
–
68,915
–
–
–
–
(100.00)
–
–
–
1.00
–
–
166,434
154,267
107,152
133,412
110,505
(7.31)
(30.54)
24.51
(17.17)
2.59
2.50
1.56
2.05
2.32
–
–
487,084
–
–
–
–
(100.00)
–
–
–
7.08
–
–
Current liabilities held for sale
Other long-term liabilities
Noncurrent liabilities held for sale
3,451,825
3,394,014
3,877,034
3,236,406
1,780,340
(1.67)
14.23
(16.52)
(44.99)
53.73
54.99
56.36
49.80
37.34
Total liabilities $ 3,829,214
$ 3,810,391
$ 4,340,610
$ 4,544,591
$ 2,185,201
(0.49)
13.92
4.70
(51.92)
59.60
61.73
63.10
69.92
45.83
Total long-term liabilities
Shareholders’ equity:
Preferred stock, $0.01 par value; 10,000,000
shares authorized, no shares issued
–
Common stock, $0.01 par value; 180,000,000
shares authorized;
89,028,158 and 88,024,395 issued and
outstanding as of December 31, 2021 and
2020, respectively
Additional paid-in capital
Accumulated other comprehensive loss
Accumulated deficit
–
–
–
871
874
877
880
890
0.34
0.34
0.34
1.14
0.01
0.01
0.01
0.01
0.02
2,517,545
(374,118)
428,573
2,541,987
(462,377)
252,823
2,557,642
(414,884)
361,746
2,580,327
(371,365)
(310,386)
2,636,350
(119,751)
0.97
23.59
(41.01)
0.62
(10.27)
43.08
0.89
(10.49)
(185.80)
2.17
(100.00)
(61.42)
39.19
(5.82)
6.67
41.18
(7.49)
4.10
37.18
(6.03)
5.26
39.70
(5.71)
(4.78)
55.29
(2.51)
2,517,489
(9.31)
7.37
(24.18)
32.54
40.05
37.80
36.42
29.23
52.80
22,417
28,806
33,151
55,315
65,388
28.50
15.08
66.86
18.21
0.35
0.47
0.48
0.85
1.37
$ 6,424,502
2,572,871
$ 6,172,504
$ 6,879,142
$ 6,499,362
$ 4,768,078
(3.92)
11.45
(5.52)
(26.64)
100
100
100
100
100
$
$
$
$
$
Total equity
Redeemable noncontrolling interests
TOTAL LIABILITIES AND EQUITY
–
–
2,333,307
–
2,505,381
–
1,899,456
–
–
49.80
150.00
30.00
100.00
20.00
38.83
37.34
20.13
50.00
10.00
20.38
10.33
6.75
7.34
5.87
(44.99)
10.75
(50.00)
(37.26)
(69.05)
(100.00)
(80.38)
(150.00)
2018
10.38
8.49
6.74
–
(16.52)
2017
(3.88)
7.88
7.30
7.47
14.23
11.34
(4.48)
Intangible assets, net
56.36
54.99
53.73
50.00
40.00
– (1.67)
Total current assets
60.00
2019
2020
Axis Title
2021
2018
2019
Axis Title
2020
2021
Horizontal Analysis
Vertical Analysis
Percentage Change
(Current am.- Previous am)/Previous am. *100
Percentage of the Total net Revenue
SOURCES of REVENUE Changes Horizontal
Analysis
SOURCES of REVENUE Vertical Analysis
60.00
40.00
2021
$ 684,292
364,598
1,147,884
93,425
24,195
2018
0.68
(0.33)
12.21
(46.37)
(44.90)
(100.00)
2019
(1.35)
5.12
12.70
(11.44)
(4.44)
–
2020
5.54
12.01
3.05
(17.20)
19.91
–
2021
14.68
10.46
10.60
(4.96)
(10.41)
–
2017
20.07
9.92
28.08
8.81
1.51
33.06
2018
30.09
14.72
46.92
7.04
1.24
–
2019
28.15
14.67
50.14
5.91
1.12
–
2020
28.55
15.79
49.66
4.70
1.29
–
2021
29.57
15.75
49.60
4.04
1.05
–
2,089,929
$ 2,314,394
(33.80)
5.44
4.06
10.74
101.44
100.00
100.00
100.00
100.00
2,089,929
2,314,394
(100.00)
(32.85)
5.44
4.06
10.74
(1.44)
100.00
100.00
100.00
100.00
100.00
1,154,522
1,243,804
(31.69)
5.53
4.26
7.73
54.16
55.09
55.14
55.24
53.74
87,241
1,241,763
120,489
37,362
262,272
(32,819)
95,256
482,560
158,105
7,233
4,751
11,720
181,809
1,906,132
90,702
1,334,506
136,739
38,519
301,339
(17,900)
106,717
565,414
76,993
24,650
24,293
12,778
138,714
2,038,634
(28.82)
(31.49)
(43.92)
(55.30)
(26.57)
(43.82)
(37.37)
4.84
124.07
22.47
18.43
(29.32)
5.00
5.49
7.63
3.41
6.51
9.44
7.05
1.51
(100.00)
(100.00)
(28.81)
(1.03)
5.04
2.00
4.10
1.72
5.29
1.05
8.34
(3.76)
(15.60)
(82.54)
(44.60)
(22.86)
(1.24)
3.97
7.47
13.49
3.10
14.90
(45.46)
12.03
17.17
(51.30)
240.80
411.32
9.03
(23.70)
6.95
4.03
58.20
6.92
2.71
11.70
5.04
26.37
6.21
0.03
0.86
7.09
91.65
4.28
59.37
5.78
1.80
12.79
4.22
24.59
9.69
0.10
1.16
1.56
12.50
96.46
4.26
59.40
5.90
1.77
12.92
4.38
24.97
9.33
1.36
1.05
11.74
96.10
4.17
59.42
5.77
1.79
12.55
(1.57)
4.56
23.09
7.57
0.35
0.23
0.56
8.70
91.21
3.92
57.66
5.91
1.66
13.02
(0.77)
4.61
24.43
3.33
1.07
1.05
0.55
5.99
88.09
183,797
275,760
(71.54)
16.32
134.45
50.04
8.35
3.54
3.90
8.79
11.91
40,606
143,191
67,557
208,203
(73.37)
(71.20)
153.20
(7.27)
61.87
168.60
66.37
45.40
1.31
7.04
0.52
3.02
1.25
2.65
1.94
6.85
2.92
9.00
(812,390)
(12,641)
–
(124.39)
(1,529.96)
(98.44)
–
(12.23)
2.83
(38.87)
(0.55)
50.00
20.00
40.00
(20.00)
Percentage
2020
596,698
330,070
1,037,852
98,302
27,007
Percentage
Acadia Healthcare Company, Inc.
(40.00)
(60.00)
30.00
20.00
(80.00)
10.00
(100.00)
(120.00)
Commercial
Medicare
Medicaid
Self-Pay
Other
NHS (National Health
Service_U.K.)
2018
0.68
(0.33)
12.21
(46.37)
(44.90)
2019
(1.35)
5.12
12.70
(11.44)
(4.44)
2020
5.54
12.01
3.05
(17.20)
19.91
2021
14.68
10.46
10.60
(4.96)
(10.41)
(100.00)
–
–
–
Commercial
Medicare
Medicaid
Self-Pay
Other
NHS (National Health
Service_U.K.)
Categories of expenses Changes Horizontal
Analysis
2017
20.07
9.92
28.08
8.81
1.51
2018
30.09
14.72
46.92
7.04
1.24
2019
28.15
14.67
50.14
5.91
1.12
2020
28.55
15.79
49.66
4.70
1.29
2021
29.57
15.75
49.60
4.04
1.05
33.06
–
–
–
–
Categories of expenses Vertical Analysis
70.00
30.00
60.00
20.00
50.00
10.00
(669,199)
195,562
(187.92)
(162.75)
(707.69)
(129.22)
7.04
(9.21)
5.48
(32.02)
8.45
(2,933)
(4,927)
(207.32)
354.17
144.62
67.98
0.01
(0.01)
(0.06)
(0.14)
(0.21)
(672,132) $
190,635
(187.95)
(161.98)
(717.07)
(128.36)
7.05
(9.23)
5.42
(32.16)
8.24
–
Axis Title
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended December 31
(In thousands, except share and per share amounts)
2017
2018
2019
569,242 $
573,089 $
565,350 $
Commercial $
281,270
280,340
294,691
Medicare
796,375
893,644
1,007,102
Medicaid
249,978
134,054
118,716
Self-Pay
42,774
23,568
22,522
Other
937,595
NHS (National Health Service_U.K.)
Revenue before provision for doubtful
$ 2,877,234 $
1,904,695 $ 2,008,381 $
accounts
(40,918)
Provision for doubtful accounts
2,836,316
1,904,695
2,008,381
Total net revenues
Salaries, wages and benefits (excluding equity1,536,160
1,049,317
1,107,357
based compensation expense)
114,439
81,462
85,534
Supplies
1,650,599
1,130,779
1,192,891
Cost of Revenue
196,223
110,049
118,451
Prodessional fees
76,775
34,315
35,486
Rent and leases
331,827
243,671
259,536
Other operating expenses
Other income
143,010
80,342
87,923
Depreciation and amortization
747,835
468,377
501,396
Total Operating Expenses
176,007
184,534
187,325
Interest expense, net
810
1,815
Debt extinguishment costs
22,076
Legal settlements expense
27,217
Loss on impairment
24,267
29,719
21,157
Transaction-related expenses
201,084
238,144
235,699
Total Other Expenses
2,599,518
1,837,300
1,929,986
Total expenses
Income from continuing operations before
236,798
67,395
78,395
income taxes / Earnings before income
taxes
37,209
9,907
25,085
Provision for income taxes
199,589
57,488
53,310
Income from continuing operations
(Loss) income from discontinued operatios, net
(232,974)
56,812
of taxes
199,589
(175,486)
110,122
Net (loss) Income
Net earnings/(loss) attributable to
246
(264)
(1,199)
noncontrolling interests
Net earnings attributable to Acadia
$
199,835 $
(175,750) $
108,923 $
Heatthcare Company, Inc.
Earnings per share attributable to Acadia
Healthcare Company,
Inc. stockholders:
2.30
(2.01)
1.24
Basic
2.30
(2.01)
1.24
Diluted
Weighted-average shares outstanding:
86,948
87,288
87,612
Basic
87,060
87,415
87,816
Diluted
(10.00)
40.00
30.00
(20.00)
(7.65)
(7.59)
2.15
2.10
87,875
88,595
88,769
90,793
20.00
(30.00)
10.00
(40.00)
(50.00)
Cost of Revenue
Total Operating Expenses
Total Other Expenses
2018
(31.49)
(37.37)
18.43
2019
5.49
7.05
(1.03)
2020
4.10
(3.76)
(22.86)
2021
7.47
17.17
(23.70)
Cost of Revenue
Total Operating Expenses
Total Other Expenses
1
58.20
26.37
7.09
2
59.37
24.59
12.50
3
59.40
24.97
11.74
4
59.42
23.09
8.70
5
57.66
24.43
5.99
Acadia Healthcare Company, Inc.
Horizontal Analysis
Vertical Analysis
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31
(In thousands)
Percentage Change
(Current am.- Previous am)/Previous am. *100
Percentage of the Net increase in cash and cash equivalents
2018
2017
2017
2018
2019
2020
2021
2019
2020
2021
Net cash provided by investing activities
Net cash provided by investing activities
2018
2019
2020
2021
Net cash provided by financing activities
Net cash provided by financing activities
2,000.00
3,500.00
199,589
$ (175,486) $ 110,122
$ (669,199) $
195,562
-187.92▼ -162.75▼
-707.69▼
-129.22▼
296.61▲
-581.23▼
110.64▲ -176.71▼
146.15▲
-43.82▼
9.44▲
6.10▲
14.64▲
-6.25▼ -21.34▼
-121.47▼ -116.16▼
8.34▲
5.41▲
30.03▲
4,776.77▲
12.03▲
-67.78▼
66.77▲
-77.83▼
212.53▲
14.65▲
34.87▲
46.62▲
266.10▲
34.63▲
72.87▲
-22.31▼
88.33▲
12.04▲
17.39▲
1.09▲
25.15▲
3.34▲
5.94▲
14.02▲
79.75▲
3.04▲
28.05▲
8.80▲
-124.39▼ -1,529.96▼
-98.44▼
771.64▲
-57.08▼
214.52▲
9.45▲
3,086.59
3,000.00
1,500.00
143,010
9,855
23,467
31,372
80,342
10,456
22,001
(6,737)
87,923
11,987
17,307
1,089
95,256
12,636
22,504
53,108
106,717
4,071
37,530
11,772
–
232,974
(56,812)
812,390
12,641
810
11,412
1,815
22,076
12,505
27,217
3,916
7,233
4,751
1,041
24,650
24,293
491
124.07▲ -100.00▼
-100.00▼
-82.54▼
-73.42▼
411.32▲
-52.83▼
16.96▲
(28,570)
20,808
(3,176)
(19,702)
14,447
2,725
(18,714)
(501)
(2,372)
15,340
9,675
1,519
2,448
1,968
(10,770)
-31.04▼
-5.01▼ -181.97▼
-30.57▼ -103.47▼ -2,031.14▼
-185.80▼ -187.05▼ -164.04▼
-84.04▼
-79.66▼
-809.02▼
(10,113)
7,701
(20,135)
41,910
6,164
-176.15▼ -361.46▼
-308.15▼
(8,988)
11,794
–
15,883
4,941
–
5,540
16,862
–
(10,001)
18,082
86,599
9,755
(14,940)
(38,128)
-276.71▼
-58.11▼
-65.12▼
241.27▲
-280.52▼
7.24▲
401,270
225,941
183,429
502,844
374,224
-43.69▼
-18.82▼
174.14▲
(1,693)
188,139
149,475
155,963
253
-11,212.76▼
-20.55▼
9.58▲
1.91▲
18.42▲
41.42▲
27.34▲
3.93▲
1.25▲
0.27▲
18.15▲
0.37▲
-42.46▼
30.92▲
-4.72▼
-65.26▼
47.85▲
9.03▲
-18.80▼
-0.50▼
-2.38▼
4.05▲
2.55▲
0.40▲
1.83▲
1.47▲
-8.05▼
-85.29▼
-15.03▼
25.51▲
-20.23▼
11.07▲
4.61▲
-197.54▼
-182.62▼
-144.03▼
-13.36▼
17.53▲
52.61▲
16.37▲
5.57▲
16.94▲
-2.64▼
4.77▲
22.87▲
7.29▲
-11.16▼
-28.49▼
-25.58▼
596.33▲
748.35▲
184.29▲
132.78▲
279.66▲
4.34▲
-99.84▼
-2.52▼
623.14▲
150.17▲
41.18▲
0.19▲
(19.60)
97.90
(43.16)
593.81
1,371.49
334.46
173.97
-11.11▼
-58.56▼
-100.00▼
-3.75▼
9.60▲
13.02▲
-100.00▼
-27.03▼
-407.46▼
-61.02▼
-45.11▼
-838.59▼ -226.11▼
-60.89▼
-7.65▼
-57.20▼
-2.20▼
7.81▲
105.50▲
11.82▲
0.02▲
-68.68▼
240.80▲
1.20▲
6.01▲
73.12▲
399,577
414,080
332,904
658,807
374,477
3.63
Cash paid for acquisions, net of cash acquired
Cash paid for capital expenditures
Cash paid for real estate acquisitions
Proceeds from U.K. Sale
Settlement of foreign currency derivatives
Proceeds from sale of property and equipment
Cash paid for purchase of finance lease
Other
(18,191)
(274,177)
(41,057)
5,252
(8,353)
(253,187)
(18,383)
(4,198)
(44,900)
(225,061)
(7,618)
105,008
11,765
12,975
(216,615)
(8,349)
92
(13,365)
(139,015)
(244,811)
1,511,020
(84,795)
3,493
(31,401)
3,142
-100.00▼
-7.66▼
-55.23▼
Net cash used by continuing investing activities
(336,526)
(275,768)
(147,831)
(238,237)
1,017,633
-18.05▼
–
(85,196)
(53,310)
(43,602)
279.85
(336,526)
(360,964)
(201,141)
(281,839)
1,017,633
Borrowings on long-term debt
Borrowings on revolving credit facility
Principal payments on revolving credit facility
Principal payments on long-term debt
Repayment of long-term debt
Payment of debt issuance costs
Common stock withheld for minimum statutory
taxes, net
Distributions to noncontrolling interests
Other
(57,305)
–
(39,738)
(21,920)
–
76,573
(76,573)
(52,984)
–
925,000
100,000
(100,000)
(41,291)
(909,785)
(18,295)
425,000
500,000
(330,000)
(7,969)
(2,227,935)
(7,964)
(3,455)
(3,407)
(1,648)
184
686
828
(154)
(4,369)
(916)
(3,146)
Net cash used by continuing financing activities
(60,074)
(64,237)
(59,155)
(48,249)
(1,641,061)
-203.01▼
-123.51▼
-12.41▼
-13.90▼
13.04▲
-3.53▼
1,129.20▲
-63.37▼
2.61▲
-23.47▼
2.35▲
-46.39▼
61.15▲
-527.15▼
-500.11▼
-913.38▼ -148.52▼
-62.91▼
760.49▲
-37.43▼
-18.21▼
-100.00▼
-282.18▼
-53.56▼
-11.51▼
(44.28)
40.12
(1,195.56)
(202.08)
(74.42)
-100.00▼
-49.74▼ -409.08▼
7.26
-103.89▼
-182.95▼
-100.00▼
-99.22▼
3,696.74▲
(461.07)
(500.11)
760.49
FINANCING ACTIVITIES
Net cash provided by discontinuing financing
activities
Net cash provided by financing activities
Effect of exchange rate changes on cash
Net (decrease) increase in cash and cash equivalents,
including cash classified within current assets held
for sale
Less: cash classified within current assets held for
sale
Net increase in cash and cash equivalents
CASH AND CASH EQUIVALENTS:
Beginning of period
$
Cash and cash equivalents, end of period
SUPPLEMENTAL CASH FLOW
INFORMATION:
Cash paid for interest
Cash (received) paid for income taxes
EFFECT OF ACQUISIONS:
Assets acquired, excluding cash
Liabilities assumed
Redeemable noncontrolling interest resulting from
an acquisition
1,000.00
760.49
2,000.00
593.81
1,500.00
1,000.00
500.00
334.46
279.85
173.97
(74.42)
INVESTING ACTIVITIES
Net cash provided by discontinuing investing
activities
Net cash provided by investing activities
1,371.49
2,500.00
Persentage
Depreciation and amortization
Amortization of debt issuance costs
Equity-based compensation expense
Deferred income taxes
Loss (income) from discontinued
operations, net of taxes
Debt extiguishment costs
Legal settlement expense
Loss in impairment
Other
Change in iperationg assets and liabilities, net of
effect of acquisions:
Accounts receivable, net
Other current assets
Other assets
Accounts payable and
other accrued liabilities
Accrued salaries and benefits
Other liabilities
Government relief funds
Net cash provided by continuing operating
activities
Net cash provided by discontinuing operating
activities
Net cash provided by operating activities
Persentage
$
Adjustments to reconcile net income (loss) to net
cash provided by continuing operating activities:
Cash paid for acquisiotions, net of cash acquired
Net cash provided by operating activities
Net cash provided by operating activities
OPERATING ACTIVITIES
Net income (loss)
Cash Flow Vertical Analysis
Cash Flow Changes Horizontal Analysis
30.59▲
30.59▲
-22.07▼
-30.66▼
33.33▲
-100.00▼
16,295
-1.39▼
-51.63▼
-111.17▼
(1,588)
(6,900)
20.70▲ -627.66▼
494.81▲
-27.99▼
6.93▲
-7.91▼
-54.05▼
400.00▲
230.00▲
-80.70▼
144.89▲
-56.47▼
244.26▲
317.61▲
76.93▲
26.41▲
373.66▲
-76.93▼ -26.41▼
-246.61▼
-53.23▼ -10.90▼
-5.96▼
-240.24▼ -1,664.96▼
-4.83▼
-5.95▼
-85.16▼
-131.62▼
-72.60▼
8,755.98▲
-5.13▼
-11.28▼
-1.66▼
0.05▲
12.18▲
73.36▲
119.33▲
1.02▲
2.74▲
-0.15▼
-4.39▼
-0.24▼
-0.83▼
-1.19▼
-5.16▼
-18.44▼
3,301.23▲
-89.28▼
-212.76▼
-59.43▼
-12.74▼ -1,226.38▼
-0.86▼
–
(3,093)
(2,472)
(3,250)
-20.08▼
31.47▲
-100.00▼
-10.24▼
-2.48▼
(60,074)
7,250
(67,330)
(2,566)
(61,627)
3,546
(51,499)
4,087
(1,641,061)
4,067
12.08
(8.47)
-135.39▼ -238.19▼
(16.43)
15.26▲
3,086.59
-0.49▼
(89.28)
10.77▲
(223.01)
-8.50▼
(61.91)
3.56▲
(13.60)
1.08▲
(1,226.38)
3.04▲
10,227
(16,780)
73,682
329,556
(244,884)
-264.08▼ -539.11▼
347.27▲
-174.31▼
15.20▲
-55.58▼
74.03▲
87.02▲
-183.00▼
–
(20,318)
(24,657)
(75,051)
–
21.36▲
204.38▲
-100.00▼
-67.30▼
-24.77▼
-19.82▼
10,227
(37,098)
49,025
254,505
(244,884)
-462.75▼ -232.15▼
419.13▲
-196.22▼
15.20▲
-122.87▼
49.25▲
67.21▲
-183.00▼
57,063
67,290
67,290
30,192
50,510
$ 99,535
124,192
$ 378,697
378,697
133,813
17.92▲
-55.13▼
145.88▲
280.47▲
204.93▲
-64.66▼
84.80▲
100.00
222.87▲
100.00
50.75▲
100.00
32.79▲
100.00
283.00▲
100.00
159,098
10,291
175,204
6,136
173,239
31,915
137,578
(16,486)
93,669
79,304
19,649
(1,458)
–
48,594
(3,694)
20,200
(53)
176,365
(37,350)
–
–
–
(20,147)
–
18,191
–
44,900
–
139,015
$
–
$
-24.94▼
229.67▲
(89.28)
500.00
(202.08)
(61.91)
97.90
12.08
(8.47)
(43.16)
40.12
(500.00)
(13.60)
(223.01)
(500.11)
– 7.26
(19.60) (16.43)
3.63
(1,000.00)
(44.28)
(500.00)
(461.07)
(1,000.00)
(1,195.56)
(1,226.38)
(1,500.00)
2018
2019
2020
Axis Title
2021
2017
2018
2019
Axis Title
2020
2021
Ratios
Current ratio
Inventory turnover ratio
Liquidity Ratio Receivable turnover ratio
Days Sales of inventory
Days Sales in Receivables
Debt to total assets
Solvency Ratio
Debt service coverage ratio (DSCR)
Gross Profit Margin
Profit margin ratio
Profitability ratio
Return on assets ratio (ROA)
Asset turnover ratio
2018
1.08
229.79
6.19
1.59
58.93
0.62
0.99
0.41
(0.09)
(0.03)
0.30
2019
1.17
261.31
6.62
1.40
55.15
0.63
0.72
0.41
0.05
0.02
0.31
2020
1.93
278.24
7.43
1.31
49.11
0.70
0.50
0.41
(0.32)
(0.10)
0.31
2021
1.22
276.95
8.34
1.32
43.75
0.46
0.92
0.42
0.08
0.03
0.41
Profitability ratio
Solvency Ratio
Liquidity Ratio
Current ratio
Inventory turnover ratio
Receivable turnover ratio
Debt to total assets
Gross Profit Margin
Profit margin ratio
Debt service coverage ratio (DSCR)
Return on assets ratio (ROA)
Asset turnover ratio
0.50
1.20
300.00
261.31
278.24
250.00
0.41
0.41
0.41
0.30
0.31
0.31
0.42
0.40
0.99
276.95
1.00
0.92
0.41
0.30
229.79
0.80
200.00
0.72
0.20
0.70
0.62
0.63
0.08
0.10
0.05
0.60
150.00
0.46
–
100.00
0.40
50.00
0.20
(0.03)
(0.09)
0.50
0.03
0.02
(0.10)
(0.10)
(0.20)
6.19
7.43
6.62
1.17
1.22
–
2018
2019
2020
(0.32)
(0.30)
8.34
1.93
1.08
2021
2018
2019
2020
2021
(0.40)
2018
2019
2020
2021
Ratios
Three Liquidity Ratios:
Current ratio
Inventory turnover ratio
Debt to total assets
Two
Solvency Ratios
2018
BS
450,417
416,377
IS
Receivable turnover ratio
Debt service coverage
ratio (DSCR)
Gross Profit Margin
Four profitability ratios
Current Assets
Current Liabilities
Profit margin ratio
Return on assets ratio
(ROA)
Asset turnover ratio
Cost of Revenue
(Beginning Inventory + Ending
Inventory)/2
Net Sales Revenue
(Beginning net AR + Ending net
AR)/2
Total Liabilities
Total Assets
Cash Flow from Operations
Total Current Liabilities
Net Sales Revenue-Cost of
Revenue
Net Sales Revenue
Net income
Net Sales Revenue
Net income
(Beginning Assets + Ending
Assets)/2
Net Sales Revenue
(Beginning Assets + Ending
Assets)/2
2019
1.0818
times
229.79
times
1,130,779
4,921
BS
IS
BS
BS
BS
1,904,695
307,506
3,810,391
6,172,504
414,080
416,377
542,211
463,576
2020
1.1696
times
261.31
times
1,192,891
4,565
1.59
days
6.19
times
58.93
days
0.62
0.99
$
times
2,008,381
303,475
4,340,610
6,879,142
332,904
463,576
2,523,395
1,308,185
2021
1.9289
times
278.24
times
1,241,763
4,463
1.40
days
6.62
times
55.15
days
0.63
0.72
$
times
2,089,929
281,207
4,544,591
6,499,362
495,031
404,861
1.2227
276.95
1,334,506
4,819
1.31
days
7.43
times
49.11
days
0.70
658,807
1,308,185
0.50
$
times
1.32
2,314,394
277,442
2,185,201
4,768,078
8.34
43.75
0.46
times
Current ratio can be defined as a liquidity ratio that measures a company’s ability to pay
short-term obligations.
The Inventory Turnover ratio measures the number for times a company’s inventory is
times sold and replaced over a year. It is a measure of working capital efficiency and a
company’s inventory turnover is often benchmarked against competitors or the industry
average. A low turnover ratio can serve as a leading indicator of poor sales (excess
days
inventory) while a high ratio may imply strong sales.
times Account receivable turnover measures the ability to collect cash from customers.
Days sales in receivables can be defined as the average number of days it takes to
days collect outstanding receiveable amounts from customers.
$
The debt-to-total-assets ratio shows how much of a business is owned by creditors
(people it has borrowed money from) compared with how much of the company’s assets
are owned by shareholders. For example, in 2021 for every 46 cents conpany owes in
debt, it has $1 in assets. A lower ratios show a company is performing well and
depending less on debt. A higher ratio means a company must maintain a high revenue
stream or reduce its debt in order to pay its expenses.
374,477.0
404,861
0.92
The debt-service coverage ratio (DSCR) is a measurement of a firm’s available cash
flow to pay current debt obligations. A DSCR of less than 1 means negative cash flow,
which means that the company will be unable to cover or pay current debt obligations
without drawing on outside sources—in essence, borrowing more.
times
For example, a DSCR of 0.92 means that there is only sufficient net operating income
to cover 92% of annual debt payments.
Though there is no industry standard, a DSCR of at least 2 is considered very strong.
Many lenders will set minimum DSCR requirements between 1.2 and 1.25.
IS
773,916
40.63%
1,904,695
815,490
40.60%
2,008,381
848,166
2,089,929
40.58%
979,888
2,314,394
42.34%
This ratio compares the gross margin of a company to its revenue. It shows how much
profit a company makes after paying off its Cost of Revenue. The ratio indicates the
percentage of each dollar of revenue that the company retains as gross profit.
IS
(175,750)
-9.23%
1,904,695
108,923
2,008,381
5.42%
(672,132)
-32.16%
2,089,929
190,635
2,314,394
8.24%
The profit margin is a ratio of a company’s profit (sales minus all expenses) divided by
its revenue. The profit margin ratio compares profit to sales and tells you how well the
company is handling its finances overall
(175,750)
-2.79%
6,298,503
108,923
6,525,823
1.67%
(672,132)
-10.05%
6,689,252
190,635
5,633,720
3.38%
Return on assets is a ratio that provides how much profit a company can generate from
its assets. In other words, return on assets (ROA) measures how efficient a company’s
management is in earning a profit from their economic resources or assets on their
balance sheet.
1,904,695
6,298,503
2,008,381
6,525,823
2,089,929
6,689,252
2,314,394
5,633,720
0.411
Asset turnover can be defined as the amount of sales or revenues generated per dollar of
assets. The asset turnover ratio is an indicator of the efficiency with which a company is
deploying its assets.
IS
BS
IS
BS
0.302
0.308
0.312

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