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Financial Analysis On Possibility Of Merger And Acquisition - 1925 Words

A Financial Analysis On The Possibility Of A Merger And Acquisition (Research Paper Sample) Content: FINANCEStudents NameInstitutionIntroductionOmega Healthcare Investors, IncorporatedOmega Healthcare Incorporated is an investment company which specializes in leasing healthcare facilities and such related investments in in the US. The public company which was established in 1992 is based in the state of Maryland. House of Hanover, Ltd and Sterling Acquisition Corporation are some of the subsidiaries which are directly owned by the corporation. In its report, it considers its business as a Real Estate Investment Trust (REIT) which takes a long-term approach in healthcare investments. Omega Healthcare Incorporated provided mortgage and lease financing agreements to healthcare operators. Rental income and mortgage interest income makes up some of the operational assets of the company.Merck Co.Merck Co. Incorporated is a pharmaceutical company based in the US. The company which is based in New Jersey was established in 1891 and nationalized in 1917 as a US business. It deals with a wide range of pharmaceutical products and medical research. The efforts in research by the company has led to the development of different kinds of medicine to cure various diseases and ailments. The range of products produced by the company also includes veterinary health products. Both human and animal healthcare products are distributed in a well-established supply chain network. The business of the corporation is conducted in a regulated business environment which is one of the major risks faced in the industry.Omega Healthcare Investors, Incorporated Ratio AnalysisReturn on Assets (ROA)The Return on Assets is a profitability ratio which shows how well a company uses its assets to generate profits. The ratio is obtained by dividing the annual net income by the value of the total balance sheet assets. For the year ended 2016, in its consolidated statement of comprehensive income, Omega Healthcare Investors, Inc. had US$383,367,000 million as net income. The total as sets as of 2016 were US$8,949,260,000. The Return on Assets ratio for the same year was 0.043. Compared to the previous year 2015, the net income of the company was reported as US$224,524,000. The total assets for the same year were US$7,989,936,000. The Return on Assets for 2015, therefore, is 0.028.Return on Equity (ROE)The return on equity is a profitability ratio. The ratio informs on the profits made in relation to the value of equity capital. The ratio is arrived at by taking the net profit divided by the total equity. The net income for the year ended 2016 at Omega Healthcare was US$383,367,000. The total equity in the same year as per the balance sheet is US$4,156,425,000. The Return on equity ratio for the same year, therefore, is 0.092. For the previous year 2015, the net profit amounted to US$224,524,000 and the value of total equity was US$2,751,096,000. The Return on Equity, therefore, is 0.082.Profit marginThe profit margin is the third metric of profitability. The rat io gives an indication of the actual value of profits made out of the revenue registered by the company. To obtain the ratio we take the net income and divide by the revenue. For the year ended 2016, Omega Healthcare Investors, Incorporated had US$383,367,000 as net income. In the same year, the companys revenue was reported as US$900,827,000. The profit margin is therefore 43%. Similarly, in the previous year, the reported net income was US$224,524,000 and the revenue related to the profits were US$743,617,000. The profit margin associated with the reported earnings of 2015, therefore, were 30%.Earnings per ShareEarnings per share as a ratio shows the relationship between the reported Net Income to the common shares in a company (Mehta, 2016, p.437). For the year ended 2016, Omega Healthcare Company had US$383,367,000 in Net Income. The Net Income which attributed to the non-controlling interest based on the total Net Income was US$16,952,000. The Net Income attributed to the comm on shareholders was US$366,415,000. The weighted average shares outstanding were 191,781,000 and the Net Income attributed to the common shareholders in the same year was US$366,415,000. The earnings per common stock for the same year was US$1.91. Similarly, in 2015 the Net Income available to the common shareholders were US$224,524,000 and the basic weighted average shares outstanding were 172,242,000. The earnings per share ratio, therefore, is US$1.29.Debt to Worth RatioThis is an important ratio in analyzing the viability of a merger between the two companies. The ratio gives an insight on the ability of a company to offset losses and meet the long term and the short term financial obligations. To obtain the ratio the total liability is divided by the net worth. The Net Worth is the difference between the total assets and the total liabilities. As of the year ended 2016, Omega Healthcare had US$4,737,274,000 in total assets. The net worth in the same year was US$4,211,986,000. T he Debt to worth ratio is 1.12. Similarly, in the previous year, the Total liabilities were US$3,889,071,000 and the net worth was US$4,100,865,000. The debt to worth ratio, therefore, is 0.95.Merck Co.Return on Assets (ROA)The total assets at Merck Co. for the year ended 2016 was US$ 95.377 billion. The Net Income for the same year was US$3.941 billion giving a return on assets of 0.041. The return on Assets (ROA) ratio measures the reported net income in relation to the balance sheet assets (Dlabay, Burrow Kleindl, 2016, p.306). As of the year ended 2015. Merck Co. had US$101.677 billion in total assets and US$4.459 billion in Net Income reported in its statement of comprehensive income. The Return on Assets in 2015 was 0.044. Compared to the asset base of Omega Healthcare Investors, Incorporated, Merck Co. has more assets.Return on Equity (ROE)The Return on Equity (ROE) relates the profits of the company and the equity capital invested by its shareholders. The ratio is obta ined by dividing the Net Income by the weighted average value of the shareholders equity. For the year ended 2016, the Net Income at Merck Co. was US$3.941 billion. The average equity value was US$42.5375 The Return on equity, therefore, was 0.092. Similarly, for the year ended 2015, the Net Income reported was US$4.459 billion and the weighted average equity value was US$46.779 billion. The Return on Equity for the same year obtained by dividing the two was 0.1.Profit marginThe profit margin is a profitability indicator which looks at the actual value of profits made from the revenue in the company. The Net Income for 2016 at Merck Co. were US$3.941 billion. The revenue registered in the same financial year was US$39.807 billion. To obtain the profit margin given the two figures, we divide the net income by the revenue. The profit margin based on this revenue is 0.1. For the previous year 2015, the Net Income in the company was US$4.442 billion and the revenue in the same year wa s US$39.498 billion. The profit margin related to this year was therefore 0.11.Earnings per ShareFor the year ended 2016, the Net Income of Merck Co. was US$3.941 billion. The Net Income which was attributable to the non-controlling interest was US$21 million. Of the Net Income reported, the Net Income attributable to Merck Co., Incorporated was US$3.920 billion. The reported basic earnings per common share were US$1.42 and the diluted Earnings per common share attributable to the common stockholders were US$1.41. The Net Income for the year ended 2015 was US$4.459 billion and the Net Income attributable to the non-controlling interest was US$17 million. The basic and diluted earnings per share were US$1.58 and US$1.56 respectively.Debt to Worth RatioDebt to worth ratio analyzes the solvency of the company. It gives an important insight on how well a company can offset losses and still be in a position to meet its financial obligations as they fall due. To arrive at the ratio the total balance sheet liabilities are divided by the net worth of the company which is the difference between the total assets and the total liabilities (Banerjee, 2015, p.485). As of the year ended 2016, the total liabilities of the company were US$55.069 billion. The net worth given by the difference between the total assets and the total liabilities is US$40.308 billion. The corresponding ratio is 1.36. Similarly, for the year ended 2015, the total liabilities of Merck Co. were US$56.910 billion. The Net Worth was US$44.767 billion. The debt to worth ratio is 1.27.Profitability TrendsBased on the analysis of the two company, it can be noted that they have a sound financial position. Starting with Omega Healthcare, the company posted positive profits for the two financial years US$366.415 million and US$224.524 million. Similarly, Merck Co. posted a Net Income of US$3.941 billion in 2016 and US$4.459 billion in 2015. On the profit margin basis, Omega Healthcare had 43% and 30 % f or 2016 and 2015 respectively. Merck Co., on the other hand, had 10% and 11% for the two consecutive ...

Information Technology Report Singapore As A World Leader

The [Singaporean] government has frequently referred to Singapore s population as its only natural resource and described education in the vocabulary of resource development† (Lepoer, 1989). The Global Information Technology Report has Singapore as a world leader in the quality of their education as well as Internet access provided to their schools (Dutta, Geiger, Lanvin, 2015). Singapore has accomplished this by having meticulous outlines on what the public school system looks to accomplish as well as having an eye toward the future. While strict government laws and policies work to enhance the quality of education, they also limit many rights associated with freedoms of speech and expression. Quality of Education System Desired Outcomes of Education The Ministry of Education developed an outline for the purpose of public education. They termed it the Desired Outcomes of Education or DOE (Ministry of Education, 2015 April). This outline defines four attributes that every student should have upon graduation, they should be: â€Å"A confident person, a self-directed learner, an active contributor, and a concerned citizen† (MOE, 2015 April). If the key stages of the DOE are followed a student should graduate with a good sense of self-awareness, a sound moral compass, and the necessary skills and knowledge to take on the challenges of the future† (MOE, 2015 April). Compulsory Education Act The Compulsory Education Act was brought into law October 9th, 2000 (MOE, 2015 July). 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It is known as the most profitable airline company in the world (Airline Industry Profile, 2016). The Singapore Airlines strategy to reorganization of the company’s infrastructure and the incorporation of the new services targeting on the satisfaction of the customer services, moved the company to the leading place among the airlines services. The analysis of the Singapore Airlines caseRead MoreDigi1251 Words   |  6 Pagesdecided to turn to the CRM experts at iZeno and SugarCRM ®. If there is one defining story in the technology world today, it is most likely the explosive growth of mobile communications. It is well known that there are more mobile handsets than personal computers and that each of them has more computing power than the NASA computers that placed a man on the moon. 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Professional Practice for Scope and Limitations -MyAssignmenthelp.com

Question: Discuss about theProfessional Practice for Scope and Limitations. Answer: Introduction Purpose, Scope and Limitations The report is formulated in order to describe the different types of recruitment strategies of the Australian employers to the students. The employers are using different methods of competitive recruitment and selection strategies in order to select appropriate students from the campus so that they can perform their work more in their field of work. Sources and Methods The sourcing and methods used in selection of the strategies of recruitment and selection of the employers in the country of Australia. The multinational companies select candidates from the universities that are having different types of the department and are well reputed (DePoy and Gitlin 2015). Analysis of the Current Condition Recruitment in Australia Australia is the country where there are many reputed universities that provides higher education to numerous branches of subjects. Both the government and private universities of Australia have well developed system of education that they provide to the students. They use updated curriculum and technologies in order to make the students industry ready. The students not only include the domestic students of the country itself but also to the different international students who comes to study in the Australian universities for their well settled career. Recruitment in the country is widely depended on the economy of the country as well as government regulations (Frasca and Edwards 2017). Recruitment Strategies of the Employees The techniques that are used by most of the employers of reputed companies are psychological testing, behavioural interviewing, internships, Skype interview, usage of LinkedIn profile, networking, video interviewing, group interviewing, etc. They choose among these modes of recruitment as per the type of job they are recruiting. The old techniques of recruitment through letter or resume have been changed into online or digital platforms. New technologies are used in terms of the selection process of the different candidates for respective job positions (Leekha Chhabra and Sharma 2014). Among the other methods of recruitment that are mentioned above the two strategies will be described below. Discussion of the Recruitment Strategies The recruitment strategies that will be discussed in this section are psychological testing and internships. It can be said that employers in Australia frequently used these methods of recruitment in order to check the nature of the candidates. The psychological tests are important in order to check the compatibility of the candidates in the proper field of work. In the tests, there are no right or wrong, there are different types of answers that will help the employers in judging the nature of the candidates (Robinson 2014). It helps in dealing with people and the ability to cope up with the pressure of the particular job. Interviewer through psychometric tests determine the skills and abilities of the interviewees in order to lead the work in a single handed or the power to understand the organizational as well as goals of the field of work they will be doing (Salman et al. 2014). Another mode of recruitment is internships. Many graduate students along with the management students are recruited by the companies as an intern for 2 to 3 months. At that point of time, they will get to learn about the organizational culture as well as the work culture, duties and responsibilities in that particular designation of work. During the time of internships, the performances of the interns are important in terms of their future recruitment. Most of the employers are hoping to recruit the interns who are doing internships for the company if they are performing well because it will help the employers in saving the cost of conducting recruitment for the designation along with the training procedures to the newly recruited candidates (Taylor 2014). Conclusion It can be concluded that the companies of Australia along with the university students both are in competition for their best fit. Employers are in terms of the best fit in the perspective of recruitment whether the university students are in the field of achieving a secured and well established position in a good company for their starting in the career. The above two methods are internships and psychological testing are described in details that have their importance in selecting candidates that are appropriate for the designation of work. Recommendations Recommendations are provided to the university students of Adelaide in order to prepare themselves for different types of recruitment strategies for the employers that will be coming to the campus for the placements. The recommended strategies are: The students must know about the various types of recruitment strategies of the different companies that are present in Australia. Students must have a clear idea about the current knowledge about the affairs happening in Australia and rest of the world regarding their field of education or in that particular field of work (Bryson, James and Keep 2013). Students must have a proper idea about the company and regarding the job description they are going to sit for the interview. Students must be aware of the different processes of the interviews that will be conducted by the particular employee. They must have the particular knowledge regarding their goals and objectives of their life in terms of career improvement (Chaneta 2014). Students should discuss all the process of recruitment selection and other theoretical knowledge with their teachers and other faculties who are responsible for improving their knowledge in the career plans. Bibliographies Bryson, J., James, S. and Keep, E., 2013. Recruitment and selection.Managing human resources. Human Resource Management in transition, pp.125-149. Chaneta, I., 2014. Recruitment and Selection.International Journal of Management, IT and Engineering,4(2), p.289. DePoy, E. and Gitlin, L.N., 2015.Introduction to research: Understanding and applying multiple strategies. Elsevier Health Sciences. Frasca, K.J. and Edwards, M.R., 2017. Web?based corporate, social and video recruitment media: Effects of media richness and source credibility on organizational attraction.International Journal of Selection and Assessment,25(2), pp.125-137. Leekha Chhabra, N. and Sharma, S., 2014. Employer branding: strategy for improving employer attractiveness.International Journal of Organizational Analysis,22(1), pp.48-60. Robinson, O.C., 2014. Sampling in interview-based qualitative research: A theoretical and practical guide.Qualitative Research in Psychology,11(1), pp.25-41. Salman, R.A.S., Beller, E., Kagan, J., Hemminki, E., Phillips, R.S., Savulescu, J., Macleod, M., Wisely, J. and Chalmers, I., 2014. Increasing value and reducing waste in biomedical research regulation and management.The Lancet,383(9912), pp.176-185. Taylor, S., 2014. Recruitment and selection.Strategic Human Resource Management: An International Perspective,10(6), pp.139-14.