The assessment comprises of three tasks – task 1, 2 & 3. Use the financial statement below to address tasks 2 & 3.
UDG Healthcare plc Group Income Statement for the year ended 30 September 2020
Task 1: Learning Outcome 1 & GA (25 Marks)
(a) Evaluate the recent developments in the financial and legal/regulatory environment of health and social care service delivery.
(15 marks)
(b) Discuss the usefulness of alternative funding options such as Private Finance Initiatives (PFI), the financial aspects of agency partnerships, competition, pricing, tendering and outsourcing in the health and social care sector.
Task 2: Learning Outcomes 3 & 4 (30 Marks)
a) Discuss the business`s financial performance using UDG Healthcare plc Group`s financial statement above. To address this question in full, you may consider the following:
Calculate and analyse the Return on Equity (ROE) using the DuPont method for 2019 and 2020
Calculate the Current Ratio and Debt to Equity ratios and discuss the company`s liquidity and solvency position with the help of these ratios
Based on the ratios above, do you think UDG is a viable business? Justify your answer
UDG Healthcare plc has two possible mutually exclusive service offerings. The Finance Manager projected the following investment information. The company`s cost of capital is %10. Evaluate these investment options with Net Present Value (NPV) and Internal Rate of Return (IRR) techniques. Recommend which option the company should choose to invest in.
Task 3: Learning outcomes 2 & 4
As a financial advisor, write a briefing report to the board of directors of the UDG Healthcare plc Group covering the following:
A discussion of the process for preparing financial statements
An analysis of how financial statements help with the decision-making process of healthcare organisations
An assessment of how UDG Healthcare plc Group could use the financial statements (above) to make future investment decisions, especially in the current economic climate.
