This assignment is about financial analysis. I am supposed to download and compare the financial&annual reports for last 3 years of two companies in the same professional field. I have chosen Pair 2-...

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This assignment is about financial analysis. I am supposed to download and compare the financial&annual reports for last 3 years of two companies in the same professional field. I have chosen Pair 2- Health care industry: Ramsay Healthcare Ltd. and Sonic Healthcare Ltd. I will attach the reports for both companies here.
The due date is on 19/10/20 at 5 PM. But since I am requesting for assistance a day before, can I get it on time or will it take more than a day? If so, I will submit it late.
All relevant files sent [email protected]


Sonic Healthcare Annual Report 2019.pdf SONIC HEALTHCARE LIMITED ABN 24 004 196 909  LEVEL 22, GROSVENOR PLACE  225 GEORGE STREET  SYDNEY  NSW 2000  AUSTRALIA LOCKED BAG 145  NORTH RYDE  NSW 1670  TELEPHONE (02) 98 555 444  FACSIMILE (02) 9878 5066 Friday, 18 October 2019 Company Announcements Australian Securities Exchange 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, Re: Annual General Meeting Details The Board of Sonic Healthcare Limited (Sonic) is pleased to announce that Sonic’s 2019 Annual General Meeting will be held at 10.00am on 19 November 2019 in the Fort Macquarie Room, InterContinental Sydney Hotel, 117 Macquarie Street, Sydney NSW. The Notice of Meeting and Proxy form will be sent to shareholders today. Sonic’s 2019 Concise Annual Report is accessible online at www.sonichealthcare.com/annual-reports. As permitted by section 314 of the Corporations Act 2001 (Cth), the report will be sent only to those shareholders who have requested a copy. Pursuant to ASX Listing Rule 3.17, attached is a copy of the Notice of Meeting, Proxy form and Concise Annual Report. Yours faithfully Paul Alexander Company Secretary 1 SONIC HEALTHCARE LIMITED ABN 24 004 196 909  LEVEL 22, GROSVENOR PLACE  225 GEORGE STREET  SYDNEY  NSW 2000  AUSTRALIA LOCKED BAG 145  NORTH RYDE  NSW 1670  TELEPHONE (02) 9855 5444  FACSIMILE (02) 9878 5066 THIS DOCUMENT IS IMPORTANT If you do not understand it or are in any doubt about how to act, you should consult your stockbroker, solicitor, accountant or other professional adviser immediately. SONIC HEALTHCARE LIMITED ACN 004 196 909 NOTICE OF ANNUAL GENERAL MEETING 2019 AND EXPLANATORY MEMORANDUM The Annual General Meeting of shareholders will be held in the Fort Macquarie Room, InterContinental Sydney Hotel, 117 Macquarie Street, Sydney NSW on 19 November 2019, commencing at 10.00am (Sydney time). If you are unable to attend the meeting, you are encouraged to appoint a proxy to attend and vote on your behalf. Proxies must be appointed in accordance with the instructions set out in the proxy form enclosed with this booklet. Proxy appointments and any authority documents must be received by no later than 10.00am (Sydney time) on 17 November 2019. A copy of Sonic's concise annual report for the financial year ended 30 June 2019 is accessible on Sonic's website at the following address: www.sonichealthcare.com/annual-reports. As permitted by the Corporations Act 2001 (Cth) (Corporations Act), a physical copy of the concise annual report has been sent only to shareholders who have elected to receive a physical copy. 2 SONIC HEALTHCARE LIMITED ABN 24 004 196 909  LEVEL 22, GROSVENOR PLACE  225 GEORGE STREET  SYDNEY  NSW 2000  AUSTRALIA LOCKED BAG 145  NORTH RYDE  NSW 1670  TELEPHONE (02) 9855 5444  FACSIMILE (02) 9878 5066 Notice of Annual General Meeting 2019 Notice is given that the 2019 Annual General Meeting of Sonic Healthcare Limited (Sonic or the Company) will be held in the Fort Macquarie Room, InterContinental Sydney Hotel, 117 Macquarie Street, Sydney NSW on Tuesday, 19 November 2019, commencing at 10.00am (Sydney time). AGENDA ORDINARY BUSINESS Financial Statements and Reports To receive and consider: (a) the financial report of the Company; (b) the directors’ report; and (c) the auditor’s report, for the financial year ended 30 June 2019. Election of Directors To consider and, if thought fit, pass each of the following resolutions as an ordinary resolution: 1. THAT Dr Jane Wilson, who retires in accordance with Article 71 of the Company's Constitution and, being eligible, offers herself for re-election, is re-elected as a director of the Company. 2. THAT Dr Philip Dubois, who retires in accordance with Article 71 of the Company's Constitution and, being eligible, offers himself for re-election, is re-elected as a director of the Company. Remuneration Report To consider and, if thought fit, pass the following resolution as an ordinary resolution: 3. THAT the remuneration report for the financial year ended 30 June 2019 is adopted. Note that the vote on this resolution is advisory only and does not bind the Company or its directors. Please refer to the instructions in the Additional Information – Proxies section on page 4 for details of how to appoint a proxy for this resolution. VOTING EXCLUSION STATEMENT: Sonic will disregard any votes cast on Resolution 3 by or on behalf of a member of the key management personnel (being each director of Sonic) or their closely related parties (including as proxy), unless the vote is cast by that person as proxy for a person entitled to vote in accordance with the direction on the Proxy Form, or where there is no specified voting direction, the vote is cast by the Chairman of the meeting as proxy, having been expressly authorised to vote on this resolution, even though it is connected with the remuneration of the directors. A “closely related party” is defined in the Corporations Act and includes a spouse, dependant and certain other close family members, as well as any companies controlled by the directors. 3 SONIC HEALTHCARE LIMITED ABN 24 004 196 909  LEVEL 22, GROSVENOR PLACE  225 GEORGE STREET SYDNEY  NSW 2000  AUSTRALIA LOCKED BAG 145  NORTH RYDE  NSW 1670  TELEPHONE (02) 9855 5444  FACSIMILE (02) 9878 5066 Executive Director Remuneration – Approval of long term incentives To consider, and if thought fit, pass each of the following resolutions as an ordinary resolution: 4. THAT, for the purposes of ASX Listing Rules 10.14 and 7.1 and all other purposes, the grant of long term incentives up to a maximum value of $2,629,971 to Dr Colin Goldschmidt, Managing Director and Chief Executive Officer, under the Sonic Healthcare Limited Employee Option Plan and the Sonic Healthcare Limited Performance Rights Plan and the subsequent allotment of shares in respect of those incentives on the terms summarised in the Explanatory Notes, be approved. 5. THAT, for the purposes of ASX Listing Rules 10.14 and 7.1 and all other purposes, the grant of long term incentives up to a maximum value of $1,168,399 to Mr Chris Wilks, Finance Director and Chief Financial Officer, under the Sonic Healthcare Limited Employee Option Plan and the Sonic Healthcare Limited Performance Rights Plan and the subsequent allotment of shares in respect of those incentives on the terms summarised in the Explanatory Notes, be approved. VOTING EXCLUSION STATEMENT: Sonic will disregard any votes cast in favour of Resolutions 4 and 5 by or on behalf of any director of Sonic (including Dr Goldschmidt and Mr Wilks), or any of their associates. However, the Company need not disregard a vote, if it is cast by such persons as proxy for a person who is entitled to vote, in accordance with the directions on the Proxy Form. In addition, the Company will disregard votes cast by a director (or any of their closely related parties) as proxy, where the appointment does not specify the way the proxy is to vote, unless the proxy is the Chairman of the meeting and has been expressly authorised to vote on behalf of someone entitled to vote on this resolution, even though it is connected with the remuneration of directors. Please refer to the instructions in the Additional Information – Proxies section on page 4 for details of how to appoint a proxy for these resolutions. 4 SONIC HEALTHCARE LIMITED ABN 24 004 196 909  LEVEL 22, GROSVENOR PLACE  225 GEORGE STREET SYDNEY  NSW 2000  AUSTRALIA LOCKED BAG 145  NORTH RYDE  NSW 1670  TELEPHONE (02) 9855 5444  FACSIMILE (02) 9878 5066 ADDITIONAL INFORMATION: This Notice is accompanied by an Explanatory Memorandum which provides an explanation of the business of the meeting, including the proposed resolutions. Voting Entitlements 1. For the purposes of the 2019 Annual General Meeting, the shares of the Company that are on issue as at 7.00pm (Sydney time) on 17 November 2019 will be taken to be held by those persons recorded on the register of shareholders at that time. Accordingly, you will be entitled to vote at the meeting if, and only if, you are a registered shareholder of the Company at 7.00pm (Sydney time) on 17 November 2019. Transfers registered after that time will be disregarded in determining shareholders entitled to attend and vote at the meeting. Custodian Voting 2. For Intermediary Online subscribers only (custodians) please visit www.intermediaryonline.com to submit your voting intentions. Proxies 3. A shareholder has a right to appoint a proxy, who need not be a shareholder of the Company. 4. If a shareholder is entitled to cast two or more votes, the shareholder may appoint two proxies. Where a proxy has two or more appointments that specify different ways to vote on a resolution, the proxy must not vote on a show of hands in relation to that resolution. 5. Where more than one proxy is appointed and the appointment does not specify the proportion or number of the shareholder's votes each proxy may exercise, each proxy may exercise half of the shareholder's voting rights (disregarding fractions). 6. You may return your proxy form to Sonic's share registry by faxing, posting or delivering it to the relevant address below, or to the registered office of Sonic
Answered Same DayOct 18, 2021ACF5903Monash University

Answer To: This assignment is about financial analysis. I am supposed to download and compare the...

Harshit answered on Oct 20 2021
152 Votes
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Question 1
· Wealth creation refers to the process in which a stable source of revenue is created using assets over a long period. By comparing the annual report
of both the companies we can see that there has been an increase in the revenue as well as the profit and earnings per share in the case of both the companies. There has been an increase in dividend payments for both companies. Moreover, there has been an increase in assets for both companies. Both companies have reduced their interest obligation in the last year.
However, the difference lies in the fact that the dividend payout ratio for Ramsay health Care is much lower than that of Sonic health care. This shows that Sonic health care has fewer growth opportunities as they pay out more money to the shareholders rather than using that money for profitable investments. Moreover, the return on assets of Ramsay health Care is considerably more than that of Sonic health care. This shows better utilization of resources on part of Ramsay health care.
· The formula of return on asset used is operating income divided by total assets. This shows the revenue the company can generate from its core operations. We can see that the return on assets for Sonic Health Care has decreased from around 11.5 percent to around 10.8 percent. This is because the growth of revenue is not in line with the increase in assets. There is a large amount of depreciation expense as well. However, for Ramsay health care the return on assets has increased from around 13.11 percent to 13.26 percent. This is because the revenue has increased considerably for Ramsay Health Care. They have done better utilization of resources.
· As the Ramsay Health Care can better utilize its resources as compared to Sonic health care, we can say give Ramsay health care rank 1 and therefore rank 2 to Sonic health care. The operational efficiency of Ramsay health Care will enable them to create wealth for their shareholders in the future. Ramsay health care has seen a huge growth in the last few years which has increased the shareholder’s returns. It has better profit margins and performs better in profitability ratios.
Question 2
· There are many limitations to using the return on assets as a measure for performance. Firstly, in the case of those industries which require significant capital investment the return on asset tends to be quite low. Moreover, there are many versions of the formula for return on assets, which reduces the clarity for investors using this as a measure to figure out the performance of the company. There are other ratios such as gross profit ratio, operating profit ratio, net profit ratio, price to earnings ratio,...
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