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.
