Asiri Hospital Holdings PLC

 

1.       Background of the Company

Asiri Hospital Holdings PLC (formerly Asiri Hospitals PLC), operates the business as Asiri Health, is the largest private healthcare provider in Sri Lanka. The company commenced operations in 1986 and was listed on the Colombo Stock Exchange in the same year. Asiri Hospitals operate six hospitals and collectively has over an 800-bed capacity. Softlogic Holdings is the parent company of Asiri Hospitals group. Asiri Hospital Holdings ranked 57th in the LMD 100, an annual list of listed companies by revenue, in the 2020/21 edition

 

2.       Analysis of Financials

We have analyzed the financials of the company for the past 05 years starting from Financial year 2016/17 to 2021/22.

 

3.      

8.       Vertical analysis of the statement of financial position

	2016/17	2017/18	2018/19	2020/21	2021/22
Assets
Non Current Assets
Property, Plant and Equipment	17.30%	22.43%	20.17%	44.32%	46.55%
Right of Use Assets
Investment in Subsidiaries	74.26%	68.02%	57.92%	45.88%	40.72%
Investment in Associate/Joint Venture	0.19%	0.17%	0.14%	0.11%	0.31%
Other Non Current Assets
Total non Current Assets	91.76%	90.63%	78.23%	90.32%	87.58%
Current Assets
Inventories	0.82%	0.72%	0.45%	0.78%	0.99%
Loans granted to related parties	0.00%	0.00%	0.00%	0.00%	0.00%
Dividend Receivable	0.00%	0.00%	0.00%	0.00%	0.00%
Trade and Other Receivables	3.22%	4.39%	10.19%	1.39%	1.54%
Advances and Prepayments	0.77%	0.76%	0.97%	0.61%	0.49%
Cash and Short-term Deposits	3.43%	3.51%	0.31%	3.07%	1.30%
Total Current Assets	8.24%	9.37%	11.92%	5.85%	4.32%
Total Assets	100.00%	100.00%	90.14%	96.16%	91.90%
EQUITY AND LIABILITIES
Capital and Reserves
Stated Capital	30.41%	27.15%	22.21%	17.83%	15.67%
Revaluation Reserve	8.10%	7.15%	6.91%	6.86%	13.45%
Retained Earnings	6.19%	8.75%	9.72%	5.11%	5.85%
Share Holders' Fund / Equity	44.70%	43.06%	38.84%	29.79%	34.97%
Non-current Liabilities
Interest Bearing Loans and Borrowings	25.98%	18.01%	20.63%	42.21%	30.25%
Deferred Tax Liabilities	0.46%	3.61%	3.50%	3.38%	3.05%
Post Employment Benefit Liability	1.01%	1.05%	0.84%	0.77%	0.91%
Total Non Current Liabilities	27.44%	22.67%	24.97%	46.36%	34.21%
Current Liabilities
Trade and Other Payables	0.77%	0.52%	0.66%	4.21%	3.55%
Other Payables	0.50%	0.51%	1.02%	0.00%	0.00%
Dividend Payable	3.93%	0.28%	4.40%	0.11%	4.62%
Interest Bearing Loans and Borrowings	22.58%	31.92%	29.63%	19.33%	21.88%
Amount due on Leasehold Property	0.00%	0.00%	0.00%	0.00%	0.00%
Income Tax Payable	0.07%	1.04%	0.48%	0.19%	0.77%
Total Current Liabilities	27.85%	34.27%	36.19%	23.85%	30.82%
Total Equity and Liabilities	100.00%	100.00%	100.00%	100.00%	100.00%

 

 

 

 

 

9.       Trend analysis of financial position

	2015/16	2016/17	2017/18	2018/19	2020/21	2021/22
Total non Current Assets	100.00%	5.11%	16.27%	22.67%	83.61%	102.02%
Total Current Assets	100.00%	49.05%	89.85%	439.17%	86.26%	220.93%
Total Assets	100.00%	7.73%	20.65%	47.48%	83.77%	109.10%
Share Holders' Fund / Equity	100.00%	5.53%	13.83%	25.51%	19.97%	60.22%
Total Non Current Liabilities	100.00%	-6.07%	-13.08%	16.99%	170.69%	127.29%
Total Current Liabilities	100.00%	40.75%	93.93%	150.36%	105.54%	202.24%
Total Equity and Liabilities	100.00%	-6.88%	4.29%	27.47%	58.84%	80.73%

 

 

10.   Trend analysis of Income Statement

	2015/16	2016/17	2017/18	2018/19	2020/21	2021/22
Revenue	100.00%	18.66%	36.68%	53.63%	124.82%	170.37%
Cost of sales	100.00%	27.21%	48.72%	57.60%	158.45%	187.53%
Gross Profit	100.00%	12.25%	27.66%	50.65%	99.61%	155.79%
Other income	100.00%	172.63%	263.13%	189.83%	-74.10%	-88.45%
Administrative expenses	100.00%	21.82%	50.77%	64.33%	184.52%	175.33%
Selling and Distribution Costs	100.00%	-34.44%	-22.81%	-17.06%	2.13%	121.21%
Finance Cost	100.00%	54.74%	77.29%	109.98%	164.44%	48.00%
Finance Income	100.00%	-42.66%	30.72%	229.44%	130.44%	235.39%
Profit Before Tax	100.00%	70.12%	113.87%	98.49%	150.22%	202.95%
Income Tax Expense	100.00%	-28.43%	272.13%	-90.93%	-168.39%	764.42%
Profit for the Year	100.00%	82.40%	94.15%	122.08%	189.91%	175.50%

 

 

 

11.   Ratio Analysis

Liquidity & Efficiency

	2016/17	2017/18	2018/19	2020/21	2021/22
Current Ratio	0.30	0.27	0.60	0.25	0.30
Acid Test Ratio	0.27	0.25	0.59	0.22	0.26
Account Receivables (Times)	6.45	4.86	1.93	16.64	18.75
Merchandise Turnover	8.76	9.09	10.63	15.03	11.93
Day`s sales uncollected (days)	56.57	75.06	189.49	21.93	19.47
Days sales in Inventory (days)	31.59	26.26	19.13	25.23	25.56
Total Asset Turnover	0.15	0.15	0.15	0.18	0.21

 

When analyzing the liquidity position of the company, it was observed that their liquidity position is in very poor status. The companies current ratio stands below 0.50 which is not healthy.

 

Solvency Ratios

	2016/17	2017/18	2018/19	2020/21	2021/22
Debt Ratio	0.53	0.55	0.57	0.61	0.70
Equity Ratio	0.45	0.43	0.39	0.30	0.35
Times Interest Earned	2.54	2.69	2.33	2.33	4.16

 

 

 

 

Profitability

 

	2016/17	2017/18	2018/19	2020/21	2021/22
Net Profit Margin	23.73%	33.71%	34.31%	30.61%	37.18%
Gross Profit Margin	54.08%	53.39%	56.06%	50.76%	51.17%
Return on Assets	8.16%	8.06%	8.23%	8.79%	12.23%
Earnings per share	1.53	1.48	0.71	1.35	3.08

 

 

Summery / Conclusion

 

Company has recorded continues profits despite the adverse market conditions prevailed in the country. Even though their profitability stands at a satisfactory level, companies’ liabilities are comparatively high when compared to asset base.

 

However, they have managed to increase their asset base during last 05 years.

Company should consider on improving the working capital position and to reduce the interest bearing borrowings since their current debt ratios are not in a satisfactory level.

However, the shareholders faith over the company will be increased due to satisfactory growth of earning per share over the last 05 years.