We are Team of 3 each individual is given with one health Care company. I am assigned with Quest Diagnostics.(DGX-Stock Symbol).I need to answer for Quest Diagnostics for the following Questions.Please see attachments for income statement,Balance sheet,cash flow,Growth table,Financial Health and operating efficiency report for reference for quest diagnostics-Please see answers reported by another member in the team for another company
1) Company Ranking:(The ranking of each company in the industry in terms of their financial strengths and weaknesses)
a)DGX Strengths:(Give 2 strengths)-Please see below example one my teammate lindsey given for Lab Corp-LH company
1) Answer
2) Answer
b)DGX weakness:(Give 2 weakness)-Please see below example one my teammate lindsey given for Lab Corp-LH company
1)Answer
2)Answer
c)Company Ranking (using your financial documents, identify 2021 revenue, profit loss/gain and total liabilities)- see below example one my teammate lindsey given for Lab Corp-LH company
2. Industry(Helath care Facilities and services) Strengths & Weaknesses overall
a)Give 3 strenghts(Please see below example one my teammate lindsey given for health care facilities and services industry)
b)Give 3 weekness(Please see below example one my teammate lindsey given for health care facilities and services industry)
3) Market Rankings (Whether the markets ranking of the companies (e.g., stock performances in the secondary market) agree with your analysis in #1)-Please see below example one my teammate Lindsey given for Lab Corp-LH company.
Lindsey Answers: One of my teammate Linsey provided answers for other company .Please use as reference.

Company Rankings (The ranking of each company in the industry in terms of their financial strengths and weaknesses) ~ One page total Laboratory Corporation of America Holdings (Ticker: LH) – Lindsey
a)LH Strengths:
LapCorp reported a gross profit of $56,243 billion, an increase of 33.34 percent from the previous year. The Company also reported a total revenue of $16,120.9 billion in 2021, an increase of 13.39 percent from the previous year. These figures can show an increase in demand for the Companys products and services. Additionally, total operating cash flow for 2021 was $3,109.6 billion, an increase of 31.33 percent from 2020. Investments made by the company can also be attributed to these gains.
Strengths from the balance sheet: Cash and cash equivalents for 2021 was reported at 14,727 billion, an increase of 10.31 percent from the previous year. Net Property, Plant and Equipment (PP&E) in 2021 was $28,154 billion, an increase of 3.05 percent from the previous year. An increase in PPE makes sense when presented with the Companys increase in revenue, more PP&E is needed for expansion in services and clients. Additionally, total liabilities decrease by over 10 percent in 2021 compared to 2020 (Laboratory Corporation of America Holdings, 2022).
b)LH Weaknesses:

Inventory in 2021 decreased by 5.43 percent. Given the increase in total revenue it is interesting to see that the Company is essentially doing more with less. This may be attributed to a change in the business model to a more service-based menu for clients but could also indicate unsustainable practices.
Accumulated depreciation increased by 8.71 percent in 2021 compared to the previous year. This creates a larger liability for the Company.

C) Company Ranking (using your financial documents, identify 2021 revenue, profit loss/gain and total liabilities)

LabCorp

Revenue: LabCorp reported a total revenue of $16,120.9 billion in 2021, an increase of 13.39 percent from the previous year.
Profit Loss/Gain: LabCorp reported a total operating profit of $3,302.6 billion in 2021, an increase of 10.73 percent from the previous year.
Total Liabilities: LabCorp reported total liabilities of $10, 112 billion in 2021, a decrease of 5.93 percent from the previous year.

2.Industry(Helath care Facilities and services) Strengths & Weaknesses ~One Page

Strengths:

Lindsey:

Lack of regulatory standards for the government. The industry can essentially operate how it sees fit (profit-driven)
Companies have the ability to diversify their offerings (LabCorp offers drug R&D, diagnostics tech, info tech, testing supplies, etc.)
COVID-19 pandemic identified the ability to pivot to telehealth/virtual services, expanded opportunities.

Weaknesses:

Lindsey:

Supply chain issues are still affecting distribution of supplies

Staffing, industry has high turnover (https://www.mgma.com/data/data-stories/staffing,-uncertainty-among-top-pandemic-challenge)
3) Market Rankings (Whether the markets ranking of the companies (e.g., stock performances in the secondary market) agree with your analysis in #1) ~ One page

Laboratory Corporation of America Holdings (Ticker: LH) – Lindsey

The market expects LabCorp (LH) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2022.
The earnings report, which is expected to be released on October 27, 2022
52-Week High:317.17
52-Week Low: 200.32

DGX

DGX_income-statement_Annual_As_Originally_Reported
2017
2018
2019
2020
2021
TTM

Gross Profit
2990000000
2605000000
2689000000
3633000000
4209000000
3937000000

Total Revenue
7709000000
7531000000
7726000000
9437000000
10788000000
10582000000

Business Revenue
7709000000
7531000000
7726000000
9437000000
10788000000
10582000000

Cost of Revenue
-4719000000
-4926000000
-5037000000
-5804000000
-6579000000
-6645000000

Cost of Goods and Services
-4719000000
-4926000000
-5037000000
-5804000000
-6579000000
-6645000000

Operating Income/Expenses
-1825000000
-1500000000
-1458000000
-1662000000
-1828000000
-1848000000

Selling, General and Administrative Expenses
-1750000000
-1424000000
-1457000000
-1550000000
-1727000000
-1738000000

Depreciation, Amortization and Depletion
-74000000
-90000000
-96000000
-103000000
-103000000
-105000000

Depreciation and Amortization
-74000000
-90000000
-96000000
-103000000
-103000000
-105000000

Amortization
-74000000
-90000000
-96000000
-103000000
-103000000
-105000000

Other Income/Expense, Operating
-1000000
14000000
95000000
-9000000
2000000
-5000000

Total Operating Profit/Loss
1165000000
1105000000
1231000000
1971000000
2381000000
2089000000

Non-Operating Income/Expense, Total
-135000000
-179000000
-155000000
-87000000
218000000
-158000000

Total Net Finance Income/Expense
-151000000
-167000000
-175000000
-163000000
-151000000
-148000000

Net Interest Income/Expense
-151000000
-167000000
-175000000
-163000000
-151000000
-148000000

Interest Expense Net of Capitalized Interest
-153000000
-169000000
-180000000
-166000000
-152000000
-149000000

Interest Income
2000000
2000000
5000000
3000000
1000000

Other Income/Expense, Non-Operating
16000000
-8000000
20000000
76000000
369000000
-10000000

Irregular Income/Expense
0
-4000000

Disposal of Businesses
0
-4000000

Fixed Asset Disposals

Net Investment Income

Income from Associates, JointVentures and Other Participating Interests

Shareof Profit and Interest from Joint Venture

Pretax Income
1030000000
926000000
1076000000
1884000000
2599000000
1931000000

Provision for Income Tax
-241000000
-182000000
-247000000
-460000000
-597000000
-454000000

Earnings from Equity Interest
35000000
44000000
57000000
75000000
78000000
86000000

Net Income before Extraordinary Items and Discontinued Operations
824000000
788000000
886000000
1499000000
2080000000
1563000000

Discontinued Operations

20000000
0
0
0

Net Income after Extraordinary Items and Discontinued Operations
824000000
788000000
906000000
1499000000
2080000000
1563000000

Non-Controlling/Minority Interests
-52000000
-52000000
-48000000
-68000000
-85000000
-79000000

Net Income after Non-Controlling/Minority Interests
772000000
736000000
858000000
1431000000
1995000000
1484000000

Preferred/Other Stock Distribution
-3000000
-3000000
-3000000
-6000000
-7000000
-5000000

Other Distributions
-3000000
-3000000
-3000000
-6000000
-7000000
-5000000

Net Income Available to Common Stockholders
769000000
733000000
855000000
1425000000
1988000000
1479000000

Diluted Net Income Available to Common Stockholders
769000000
733000000
855000000
1425000000
1988000000
1479000000

Income Statement Supplemental Section

Reported Normalized and Operating Income/Expense Supplemental Section

Total Revenue as Reported, Supplemental
7709000000
7531000000
7726000000
9437000000
10788000000
10582000000

Reported Operating Expense

-7466000000
-8407000000
-8493000000

Reported Total Operating Profit/Loss
1165000000
1101000000
1231000000
1971000000
2381000000
2089000000

Reported Normalized Income
740000000
798000000
896000000
1527000000
1827000000
1587000000

Reported Effective Tax Rate
0.23
0.2
0.23
0.25
0.23

Reported Normalized Operating Profit
1282000000
1225000000
1316000000
2210000000
2565000000
2262000000

Operating Income/Expense, Supplemental Section

Depreciation, Amortization and Depletion, Supplemental

-361000000

Depreciation and Amortization, Supplemental

-361000000

-314000000

Depreciation, Supplemental

-258000000

-235000000

Amortization, Supplemental

-103000000

-79000000

Basic EPS

5.39
6.36

15.85
12.27

Basic EPS from Continuing Operations

5.39
6.21

15.85
12.3

Basic EPS from Discontinued Operations

0.15

0
0

Diluted EPS

5.29
6.28

15.55
12.02

Diluted EPS from Continuing Operations

5.29
6.13

15.55
12.04

Diluted EPS from Discontinued Operations

0.15

0
0

Basic Weighted Average Shares Outstanding

136000000
134000000

250000000
244500000

Diluted Weighted Average Shares Outstanding

139000000
136000000

256000000
250500000

Reported Normalized Diluted EPS

6.31
6.56

14.24
12.87

Total Dividend Per Share

2.03
2.12

2.48
2.56

Regular Dividend Per Share Calc

2.03
2.12

2.48
2.56

Basic EPS
5.63
5.39
6.36
10.62
15.85
12.3

Diluted EPS
5.5
5.29
6.28
10.47
15.55
12.05

Basic WASO
137000000
136000000
134000000
134000000
250000000
244500000

Diluted WASO
140000000
139000000
136000000
136000000
256000000
250500000

Fiscal year ends in Dec 31 | USD DGX

DGX_balance-sheet_Annual_As_Originally_Reported
2017
2018
2019
2020
2021

Total Assets
10503000000
11003000000
12843000000
14026000000
13611000000

Total Current Assets
1306000000
1390000000
2490000000
3058000000
2741000000

Cash, Cash Equivalents and Short Term Investments
137000000
135000000
1192000000
1158000000
872000000

Cash and Cash Equivalents
137000000
135000000
1192000000
1158000000
872000000

Inventories
95000000
99000000
123000000
223000000
208000000

Trade and Other Receivables, Current
924000000
1012000000
1063000000
1520000000
1438000000

Trade/Accounts Receivable, Current
924000000
1012000000
1063000000
1520000000
1438000000

Gross Trade/Accounts Receivable, Current
1193000000
1027000000
1078000000
1548000000
1469000000

Allowance/Adjustments for Trade/Accounts Receivable, Current
-269000000
-15000000
-15000000
-28000000
-31000000

Prepayments and Deposits, Current
150000000
144000000
112000000
157000000
223000000

Assets Held for Sale/Discontinued Operations, Current
0

Deferred Tax Assets, Current

Total Non-Current Assets
9197000000
9613000000
10353000000
10968000000
10870000000

Net Property, Plant and Equipment
1145000000
1288000000
1971000000
2231000000
2304000000

Gross Property, Plant and Equipment
3671000000
3970000000
4747000000
5223000000
5392000000

Properties
1003000000
1064000000
1005000000
1234000000
1280000000

Land and Improvements
29000000
29000000
25000000
42000000
43000000

Buildings and Improvements
430000000
429000000
341000000
526000000
532000000

Leasehold and Improvements
544000000
606000000
639000000
666000000
705000000

Machinery, Furniture and Equipment
2528000000
2704000000
2894000000
3183000000
3301000000

Furniture, Fixtures and Office Equipment
2528000000
2704000000
2894000000
3183000000
3301000000

Construction in Progress and Advance Payments
140000000
202000000
330000000
202000000
214000000

Leased Property, Plant and Equipment

518000000
604000000
597000000

Accumulated Depreciation and Impairment
-2526000000
-2682000000
-2776000000
-2992000000
-3088000000

Accumulated Depreciation
-2526000000
-2682000000
-2776000000
-2992000000
-3088000000

Net Intangible Assets
7454000000
7770000000
7740000000
8040000000
8262000000

Gross Goodwill and Other Intangible Assets
7988000000
8375000000
8439000000
8840000000
9165000000

Goodwill
6335000000
6563000000
6619000000
6873000000
7095000000

Intangibles other than Goodwill
1653000000
1812000000
1820000000
1967000000
2070000000

Trademarks and Patents
235000000
235000000
235000000
235000000
235000000

Software and Technology
95000000
104000000
104000000
141000000
141000000

Customer Relationships
1210000000
1355000000
1367000000
1479000000
1581000000

Other Intangible Assets
113000000
118000000
114000000
112000000
113000000

Research and Development

Accumulated Amortization and Impairment
-534000000
-605000000
-699000000
-800000000
-903000000

Accumulated Amortization of Intangible Assets
-534000000
-605000000
-699000000
-800000000
-903000000

Accumulated Amortization of Intangibles other than Goodwill
-534000000
-605000000
-699000000
-800000000
-903000000

Accumulated Amortization of Trademarks and Patents
0
0
0
0
0

Accumulated Amortization of Software and Technology
-45000000
-50000000
-56000000
-65000000
-74000000

Accumulated Amortization of Customer Relationships
-404000000
-478000000
-556000000
-638000000
-726000000

Accumulated Amortization of Other Intangible Assets
-85000000
-77000000
-87000000
-97000000
-103000000

Accumulated Amortization of Research and Development

Total Long Term Investments
462000000
436000000
482000000
521000000
141000000

Long Term Equity Investments
462000000
436000000
482000000
521000000
141000000

Other Non-Current Assets
136000000
119000000
160000000
176000000
163000000

Assets Held for Sale/Discontinued Operations, Non-Current

Total Liabilities
5468000000
5659000000
7080000000
7135000000
7049000000

Total Current Liabilities
1057000000
1485000000
1990000000
1776000000
1753000000

Payables and Accrued Expenses, Current
950000000
923000000
953000000
1480000000
1484000000

Trade and Other Payables, Current
347000000
371000000
413000000
591000000
472000000

Trade/Accounts Payable, Current
224000000
222000000
263000000
446000000
357000000

Dividends Payable, Current
61000000
71000000
71000000
76000000
74000000

Interest Payable, Current
46000000
47000000
45000000
26000000
26000000

Taxes Payable, Current
9000000
17000000
27000000
43000000
10000000

Other Payable, Current
7000000
14000000
7000000
0
5000000

Accrued Expenses, Current
603000000
552000000
540000000
889000000
1012000000

Financial Liabilities, Current
107000000
562000000
1037000000
296000000
269000000

Current Debt and Capital Lease Obligation
107000000
562000000
1037000000
296000000
269000000

Current Debt
71000000
98000000
88000000
153000000
116000000

Bank Overdraft, Current Debt
71000000
98000000
88000000
153000000
116000000

Bank/Credit Facilities, Current Debt

Current Portion of Long Term Debt and Capital Lease
36000000
464000000
949000000
143000000
153000000

Current Portion of Long Term Debt
36000000
464000000
804000000
2000000
2000000

Capital Lease Obligations, Current

145000000
141000000
151000000

Discontinued Operations Liabilities, Current

Total Non-Current Liabilities
4411000000
4174000000
5090000000
5359000000
5296000000

Financial Liabilities, Non-Current
3748000000
3429000000
4379000000
4512000000
4504000000

Long Term Debt and Capital Lease Obligation
3748000000
3429000000
4379000000
4512000000
4504000000

Long Term Debt
3748000000
3429000000
3966000000
4013000000
4010000000

Capital Lease Obligations, Non-Current

413000000
499000000
494000000

Other Non-Current Liabilities
663000000
745000000
711000000
847000000
792000000

Liabilities Held for Sale/Discontinued Operations, Non-Current

Total Equity
5035000000
5344000000
5763000000
6891000000
6562000000

Equity Attributable to Parent Stockholders
4921000000
5216000000
5641000000
6759000000
6444000000

Paid in Capital
-2169000000
-2327000000
-2494000000
-2523000000
-1191000000

Capital Stock
2614000000
2669000000
2724000000
2843000000
2262000000

Common Stock
2000000
2000000
2000000
2000000
2000000

Additional Paid in Capital/Share Premium
2612000000
2667000000
2722000000
2841000000
2260000000

Treasury Stock
-4783000000
-4996000000
-5218000000
-5366000000
-3453000000

Retained Earnings/Accumulated Deficit
7138000000
7602000000
8174000000
9303000000
7649000000

Reserves/Accumulated Comprehensive Income/Losses
-48000000
-59000000
-39000000
-21000000
-14000000

Non-Controlling/Minority Interests in Equity
114000000
128000000
122000000
132000000
118000000

Debt Maturity Schedule Total
3784000000
3893000000
4737000000
4015000000
4012000000

Debt due in Year 1
36000000
464000000
800000000
2000000
2000000

Debt due in Year 2
304000000
803000000

1000000
2000000

Debt due in Year 3
803000000
553000000
550000000
1000000
303000000

Debt due in Year 4
552000000
3000000

302000000
603000000

Debt due in Year 5

1000000
300000000
602000000
503000000

Debt due Beyond
2153000000
2148000000
3126000000
3095000000
2596000000

Debt – Interests Charges and Other Adjustments
-64000000
-79000000
-39000000
12000000
3000000

Capital Lease Obligation Maturity Schedule Total
42000000

33000000
27000000
34000000

Capital Lease due in Year 1
6000000

3000000
4000000
4000000

Capital Lease due in Year 2

3000000
4000000

Capital Lease due in Year 3
7000000

6000000
3000000
5000000

Capital Lease due in Year 4

3000000
5000000

Capital Lease due in Year 5
2000000

3000000
3000000
5000000

Capital Lease due Beyond
27000000

21000000
28000000
27000000

Capital Lease – Interests Charges and Other Adjustments

-17000000
-16000000

Operating Lease Obligation Maturity Schedule Total
659000000
691000000
558000000
640000000
645000000

Operating Lease due in Year 1
177000000
181000000
151000000
160000000
169000000

Operating Lease due in Year 2
139000000
143000000
129000000
140000000
153000000

Operating Lease due in Year 3
99000000
106000000
102000000
122000000
116000000

Operating Lease due in Year 4
69000000
79000000
82000000
87000000
83000000

Operating Lease due in Year 5
48000000
60000000
52000000
57000000
54000000

Operating Lease due Beyond
127000000
122000000
105000000
153000000
139000000

Operating Lease – Interests Charges and Other Adjustments

-63000000
-79000000
-69000000

Total Lease Liability
701000000
691000000
591000000
667000000
679000000

Total Lease Liability – Due in year 1
183000000
181000000
154000000
164000000
173000000

Total Lease Liability – Due in year 2
139000000
143000000
129000000
143000000
157000000

Total Lease Liability – Due in year 3
106000000
106000000
108000000
125000000
121000000

Total Lease Liability – Due in year 4
69000000
79000000
82000000
90000000
88000000

Total Lease Liability – Due in year 5
50000000
60000000
55000000
60000000
59000000

Total Lease Liability – Beyond
154000000
122000000
126000000
181000000
166000000

Total Lease Liability – Interest Charges and Other Adjustments

-63000000
-96000000
-85000000

Total Contractual Obligations
7977000000
7905000000
8725000000
7875000000
4691000000

Total Contractual Obligations due in year 1
674000000
1123000000
1463000000
654000000
175000000

Total Contractual Obligations due in year 2
443000000
946000000
129000000
144000000
159000000

Total Contractual Obligations due in year 3
1688000000
1479000000
1522000000
980000000
424000000

Total Contractual Obligations due in year 4
621000000
82000000
82000000
392000000
691000000

Total Contractual Obligations due in year 5
672000000
715000000
1073000000
1357000000
562000000

Total Contractual Obligations due Beyond
3943000000
3639000000
4558000000
4432000000
2762000000

Total Contractual Obligations – Interests Charges and Other Adjustments
-64000000
-79000000
-102000000
-84000000
-82000000

Other Contractual Obligations Maturity Schedule Total
3492000000
3321000000
3397000000
3193000000

Other Contractual Obligations due in Year 1
455000000
478000000
509000000
488000000

Other Contractual Obligations due in Year 3
779000000
820000000
864000000
854000000

Other Contractual Obligations due in Year 5
622000000
654000000
718000000
695000000

Other Contractual Obligations due Beyond
1636000000
1369000000
1306000000
1156000000

Fiscal year ends in Dec 31 | USD DGX

DGX_cash-flow_Annual_As_Originally_Reported
2017
2018
2019
2020
2021
TTM

Cash Flow from Operating Activities, Indirect
1175000000
1200000000
1243000000
2005000000
2233000000
1924000000

Net Cash Flow from Continuing Operating Activities, Indirect
1175000000
1200000000
1243000000
2005000000
2233000000
1924000000

Cash Generated from Operating Activities
1175000000
1200000000
1243000000
2005000000
2233000000
1924000000

Income/Loss before Non-Cash Adjustment
824000000
788000000
906000000
1499000000
2080000000
1563000000

Total Adjustments for Non-Cash Items
667000000
461000000
302000000
484000000
66000000
490000000

Depreciation, Amortization and Depletion, Non-Cash Adjustment
270000000
309000000
329000000
361000000
408000000
420000000

Depreciation and Amortization, Non-Cash Adjustment
270000000
309000000
329000000
361000000
408000000
420000000

Stock-Based Compensation, Non-Cash Adjustment
79000000
61000000
56000000
97000000
79000000
77000000

Deferred Taxes, Non-Cash Adjustment
9000000
73000000
15000000
85000000
-57000000
12000000

Other Provisions, Non-Cash Adjustment
315000000
6000000
11000000
19000000
4000000
3000000

Irregular Income/Loss, Non-Cash Adjustment
0
4000000
-70000000
3000000
-305000000

Gain/Loss on Disposals, Non-Cash Adjustment
0
4000000
-70000000
3000000
-305000000

Gain/Loss on Disposal/Sale of Fixed Assets, Non-Cash Adjustment

-70000000
3000000
9000000

Gain/Loss on Disposal/Sale of Business, Non-Cash Adjustment
0
4000000

-314000000

Gain/Loss on Disposal/Sale of Other Assets, Non-Cash Adjustment

Gain/Loss on Extinguishment of Debt, Non-Cash Adjustment

0

Write Down and Write off of Other Assets, Non-Cash Adjustment

Other Non-Cash Items
-6000000
8000000
-39000000
-81000000
-63000000
-31000000

Excess Tax Benefit from Stock-Based Compensation, Non-Cash Adjustment

Net Investment Income/Loss, Non-Cash Adjustment

Share of Profit/Loss from Associates, Joint Ventures and other Equity Investments, Non-Cash Adjustment

Changes in Operating Capital
-316000000
-49000000
35000000
22000000
87000000
-129000000

Change in Trade and Other Receivables
-298000000
-65000000
-63000000
-455000000
81000000
-34000000

Change in Trade/Accounts Receivable
-298000000
-65000000
-63000000
-455000000
81000000
-34000000

Change in Payables and Accrued Expenses
8000000
-15000000
102000000
474000000
15000000
-76000000

Change in Trade and Other Payables
8000000
-15000000
102000000
474000000
15000000
-76000000

Change in Trade/Accounts Payable
-8000000
-19000000
73000000
452000000
35000000
33000000

Change in Taxes Payable
16000000
4000000
29000000
22000000
-20000000
-109000000

Change in Other Operating Capital
-26000000
31000000
-4000000
3000000
-9000000
-19000000

Cash Flow from Investing Activities
-805000000
-801000000
-411000000
-772000000
21000000
-574000000

Cash Flow from Continuing Investing Activities
-805000000
-801000000
-411000000
-772000000
21000000
-574000000

Capital Expenditure, Reported
-252000000
-383000000
-400000000
-418000000
-403000000
-372000000

Purchase/Sale and Disposal of Property, Plant and Equipment, Net

91000000
3000000
3000000

Sale and Disposal of Property, Plant and Equipment

91000000
3000000
3000000

Purchase/Sale of Business, Net
-555000000
-419000000
-58000000
-330000000
-331000000
-206000000

Purchase/Acquisition of Business
-581000000
-421000000
-58000000
-330000000
-331000000
-206000000

Sale of Business
26000000
2000000

Purchase/Sale of Equity Investments
0

755000000

Sale of Joint Venture/Associate

755000000

Purchase of Joint Venture/Associate
0

Purchase/Sale of Investments, Net
2000000
1000000
-44000000
-27000000
-3000000
-754000000

Purchase of Investments

-3000000

Sale of Investments
2000000
1000000

Purchase/Sale of Intangibles, Net

Sale of Intangibles

Cash Flow from Financing Activities
-592000000
-401000000
225000000
-1267000000
-2540000000
-1120000000

Cash Flow from Continuing Financing Activities
-592000000
-401000000
225000000
-1267000000
-2540000000
-1120000000

Issuance of/Payments for Common Stock, Net
-465000000
-322000000
-353000000
-325000000
-2199000000
-862000000

Payments for Common Stock
-465000000
-322000000
-353000000
-325000000
-2199000000
-862000000

Issuance of/Repayments for Debt, Net
23000000
124000000
832000000
-805000000
-2000000
-2000000

Issuance of/Repayments for Long Term Debt, Net
23000000
124000000
832000000
-805000000
-2000000
-2000000

Proceeds from Issuance of Long Term Debt
205000000
2090000000
2281000000
749000000
0

Repayments for Long Term Debt
-182000000
-1966000000
-1449000000
-1554000000
-2000000
-2000000

Cash Dividends and Interest Paid
-247000000
-266000000
-286000000
-297000000
-309000000
-305000000

Cash Dividends Paid
-247000000
-266000000
-286000000
-297000000
-309000000
-305000000

Common Stock Dividends Paid
-247000000
-266000000
-286000000
-297000000

Cash Dividends Paid to Non-Controlling/Minority Interests
-51000000
-54000000
-54000000
-58000000
-99000000
-82000000

Proceeds from Issuance/Exercising of Stock Options/Warrants
130000000
99000000
119000000
189000000
129000000
129000000

Other Financing Cash Flow
37000000
23000000
-17000000
29000000
-60000000
2000000

Net Movement in Non-Controlling/Minority Interest
4000000
16000000

0

Excess Tax Benefit from Share-Based Compensation, Financing Activities
-23000000
-21000000
-16000000

Issue and Financing Costs

0

Debt Issuance Costs

0

Cash and Cash Equivalents, End of Period
137000000
135000000
1192000000
1158000000
872000000
790000000

Change in Cash
-222000000
-2000000
1057000000
-34000000
-286000000
230000000

Cash and Cash Equivalents, Beginning of Period
359000000
137000000
135000000
1192000000
1158000000
560000000

Other Changes

Cash Flow Supplemental Section

Change in Cash as Reported, Supplemental
-222000000
-2000000
1057000000
-34000000
-286000000
230000000

Income Tax Paid, Supplemental
-243000000

Interest Paid, Supplemental
-159000000

Fiscal year ends in Dec 31 | USD DGX

2012-12
2013-12
2014-12
2015-12
2016-12
2017-12
2018-12
2019-12
2020-12
2021-12
Latest Qtr

Revenue %

Year Over Year
-1.70
-3.20
4.04
0.78
0.29
2.58
-2.31
2.59
22.15
14.32
-3.80

3-Year Average
-0.33
-1.02
-0.34
0.50
1.69
1.21
0.17
0.93
6.97
12.73
–

5-Year Average
1.94
-0.29
-0.05
0.33
0.01
0.87
1.06
0.77
4.72
7.50
–

10-Year Average
6.04
4.20
3.79
3.13
1.83
1.41
0.38
0.36
2.50
3.69
–

Operating Income %

Year Over Year
20.68
-16.64
-1.80
8.34
8.83
0.52
-5.15
11.40
60.11
20.80
-27.20

3-Year Average
-4.04
-8.24
-0.41
-3.92
5.01
5.83
1.24
2.03
19.16
29.16
–

5-Year Average
1.93
-3.92
-6.27
-3.84
3.10
-0.60
2.00
4.60
13.10
15.49
–

10-Year Average
6.04
4.20
3.79
3.13
1.83
1.41
0.38
0.36
2.50
3.69
–

Net Income %

Year Over Year
18.10
52.77
-34.51
27.52
-9.03
19.69
-4.66
16.58
66.78
39.41
-62.92

3-Year Average
-8.65
5.60
5.72
8.46
-8.75
11.56
1.25
9.98
22.84
39.43
–

5-Year Average
10.33
7.86
-5.28
-0.33
6.51
6.80
-2.82
9.06
15.08
25.34
–

10-Year Average
5.60
6.87
1.08
2.64
0.96
8.55
2.38
1.64
7.10
15.54
–

EPS %

Year Over Year
18.49
60.12
-31.23
27.82
-7.39
21.95
-3.82
18.71
66.72
48.52
-60.48

3-Year Average
-3.66
11.01
9.27
12.07
-6.63
13.02
2.80
11.67
23.94
43.25
–

5-Year Average
14.74
13.28
-0.31
3.76
9.08
9.71
-0.92
10.51
16.54
28.09
–

10-Year Average
7.92
10.40
4.97
6.23
4.37
12.20
5.94
4.96
9.96
18.20
– DGX

Fiscal
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Current
5-Yr

Gross Margin %
40.88
39.46
37.63
37.85
38.58
38.79
34.59
34.80
38.50
39.02
37.20
37.14

Operating Margin %
16.27
14.01
13.22
14.21
15.42
15.11
14.67
15.93
20.89
22.07
19.74
17.73

Net Margin %
7.49
11.84
7.45
9.42
8.54
9.98
9.73
11.07
15.10
18.43
13.98
12.86

EBITDA Margin %
20.63
25.09
17.89
20.83
19.68
18.85
18.64
20.52
25.55
29.28
23.63
22.57

Tax Rate %
37.62
37.09
30.86
33.82
39.50
23.40
19.65
22.96
24.42
22.97
23.51
22.68

Return on Asset %
5.95
9.28
5.89
7.12
6.40
7.46
6.82
7.17
10.61
14.39
11.30
9.29

Return on Equity %
14.08
20.86
13.43
15.72
13.79
16.11
14.46
15.75
22.98
30.11
24.03
19.88

Return on Invested Capital %
8.61
12.78
8.70
9.85
8.73
10.32
9.64
9.77
13.69
18.47
14.75
12.38

Interest Coverage
7.37
9.32
6.08
8.16
8.54
7.73
6.48
6.98
12.35
18.10
13.96
10.33

Days Sales Outstanding
43.84
43.90
43.79
44.64
44.37
43.80
46.92
49.01
49.95
50.04
43.94
47.94

Days Inventory
7.62
7.76
7.91
7.60
6.56
6.85
7.19
8.04
10.88
11.96
10.60
8.98

Payables Period
17.51
19.47
20.27
21.00
21.35
18.76
16.52
17.57
22.29
22.28
–
19.48

Cash Conversion Cycle
33.94
32.19
31.43
31.24
29.58
31.88
37.58
39.49
38.54
39.72
–
37.44

Recieveables Turnover
8.33
8.31
8.34
8.18
8.23
8.33
7.78
7.45
7.31
7.29
8.31
7.63

Inventory Turnover
47.92
47.01
46.14
48.01
55.61
53.32
50.78
45.38
33.55
30.53
34.43
42.71

Fixed Assets Turnover
9.49
9.16
8.56
8.07
7.69
7.09
6.19
4.74
4.49
4.76
4.73
5.45

Asset Turnover
0.79
0.78
0.79
0.76
0.75
0.75
0.70
0.65
0.70
0.78
0.81
0.72 DGX

Liquidity/Financial Health
2012-12
2013-12
2014-12
2015-12
2016-12
2017-12
2018-12
2019-12
2020-12
2021-12
Latest Qtr

Current Ratio
1.49
1.22
0.94
1.28
1.56
1.24
0.94
1.25
1.72
1.56
1.54

Quick Ratio
1.11
0.92
0.66
0.88
1.31
1.00
0.77
1.13
1.51
1.32
1.32

Financial Leverage
2.23
2.27
2.30
2.13
2.18
2.13
2.11
2.28
2.08
2.11
2.08

Debt/Equity
0.81
0.79
0.75
0.75
0.81
0.76
0.66
0.78
0.67
0.70
0.70

Book Value/Share
26.29
26.69
29.04
32.09
34.04
35.51
39.39
42.14
48.12
53.71
54.50

SHOW MORE…

Discussion 1

Instructions
Read the Discussion Case: Mylan Pharmaceuticals and the EpiPen found in Chapter 2 of the textbook and discuss the following question.
Based on the Mylan Pharmaceuticals and the EpiPen case study, do you think Mylan did anything ethically wrong when pricing the EpiPen? Why, or why not?
Your journal entry must be at least 200 words in length.

Mylan, Inc. is a U.S. pharmaceutical company that manufactures the EpiPen, an easy-to-use auto-injection medical device. EpiPen delivers the proper dosage of epinephrine, a drug that safely and effectively counteracts anaphylaxis, a severe allergic reaction that can close a persons breathing passages and cause death. EpiPen is especially effective because the proper dosage can be quickly delivered by anyonethe persons themselves, co-workers, teachers, by standersby simply placing the device against the skin and pushing a button. Because of the ease of use, EpiPens are especially popular for treating severe allergies in children.

The device itself is simple and inexpensive, costing at most a few dollars to manufacture. The drug epinephrine is also inexpensive, costing less than $1 per dose. But, epinephrine degrades over time, so medical professionals recommend that unused devices be replaced at least once a year. It is not uncommon for someone susceptible to anaphylaxis to keep several on hand at work, school, or home. Because the EpiPen has been in use and proven its effectiveness for over forty years, the initial investment required to develop the product has long since been recovered.

Mylan purchased rights to the EpiPen in 2007. At the time, EpiPens sold for under $60 each, and annual sales approached $200 million. Mylan invested to
21
improve the design and manufacturing process, but the overall product did not change significantly. Mylan also invested heavily in marketing the product, including an advertising campaign aimed at increasing public awareness of anaphylaxis and lobbying governments to require institutions like schools to keep EpiPens on hand for emergencies and to protect those institutions from liability for using EpiPens in emergencies. By 2016, it was estimated that EpiPen accounted for over $1.5 billion in revenues for Mylan.

In the following years, a number of public and private decisions lead to major increases in the costs to consumers. Because a portion of anaphylaxis cases require a second dose of epinephrine, medical guidelines were changed in 2010 to recommend that patients always have access to two doses. Soon after this recommendation, Mylan began selling EpiPens only in packages of two, effectively doubling the price to consumers. For a variety of reasons, including regulatory roadblocks, business decisions, and patent protections, competitors have had a difficult time entering and remaining on the market. By 2016, when few competitors remained and Mylan had a 90 percent share of the market, the price for a two-pack of EpiPens had risen to over $600. It was estimated that in 2016, sales of EpiPen produced close to $1.5 billion in revenues. During this same period, Mylans CEOs pay rose from $2.3 to $19 million annually. In 2016, former CEO Robert Coury was reported to have received over $90 million in compensation from Mylan.

In 2016, Mylan came under serious public criticism for increasing the price of EpiPen. Some critics pointed out that Mylans CEO, Heather Bresch, was the daughter of former West Virginia governor and present U.S. Senator Joe Manchin. These critics claimed that her political connections helped pave the way for governmental regulations, including increased risk warnings for anaphylaxis, encouragement to schools to stock EpiPens, and regulations to make EpiPens as publicly available as defibrillators. In October 2016, Bresch was called to testify before the U.S. Congress to defend Mylans actions.

The criticisms of Mylan can be grouped into three general categories. First, some critics saw the massive profits and excessive executive compensation as another example of out of control corporate and personal greed. Second, others saw Mylan as an example of systemic failures in health care policy and economics that prevent society from providing adequate health care. Finally, some critics charged that Mylans actions violate a number of basic ethical principles.

The Mylan hearings took place during a period when affordable health care was at the center of a national political debate. This also occurred at the time when another pharmaceutical company executive, Martin Shkreli of Turning Pharmaceuticals, was in the news for raising the price of one of its drugs from $13 to $750 per pill. Shkreli, who the press had named Pharma-Bro for his condescending attitude toward public criticism, had also been called to testify before Congress, but he refused on the grounds of self-incrimination. During Breschs testimony to the U.S. House Oversight and Government Reform Committee, Congressman John Duncan told her that The greed is astounding, its sickening and disgusting. Im a very conservative, pro-business Republican, but I am really sickened by what I heard today and by what Ive read before about this situation. In my opinion, no one can really earn or deserve $19 million a year.

22
The national debate about affordable health care provided the context for much of the broader, systemic criticism of Mylan. The national debate on affordable health care focused on the relative strengths and weaknesses of free markets and government regulation in providing adequate health care. Those who argued for a greater role for free markets, most often Republicans, saw Mylan as a case study for what happens when there is a lack of competition and the market gets controlled by a near monopoly. Mylan was able to exploit this unfair competitive advantage and raise prices almost without consequences. These critics also pointed out that government regulation of the market contributed much to the problem. Governmental actions, such as requiring institutions and schools to stock EpiPens and creating regulatory standards that created a barrier for competitors to enter the market, created an economic environment in which Mylans exploitation could flourish. As a result, the public was denied access to the important good of affordable health care.

Those who supported greater governmental involvement in the health care system, most often Democrats, saw Mylan as a case study of what happens when important public goods such as health care are left to the decisions of profit-seeking corporations. These critics argued that Mylan used its political influence, lobbing activities, and marketing campaign to create artificial markets, eliminate competition, and deny the poorest citizens access to needed health care. From this perspective, a managed health care system in which private businesses are regulated by public bodies would provide better overall health care. In particular, they argued that only government regulation could prevent companies from price gouging on prescription drugs and other health care products that consumers need.

Finally, many criticisms of Mylan appealed to fundamental ethical principles and values. These critics pointed out that citizens should have a basic right to health care and that this need should not be sacrificed for the profit of private businesses. Other critics pointed out that the burden of high drug prices fell disproportionately on the poor, and that a basic principle of fairness and equality is violated by a system in which health care is distributed according to the ability to pay. Still other critics raised questions about the justice of a system in which executives earned tens of millions of dollars a year, while poor, sick people were denied access to the product that generated this wealth. These critics argued that Mylan had a duty to provide the EpiPens at an affordable price.

DISCUSSION QUESTIONS
What judgment would you make about Mylan? Did they do anything ethically wrong in their pricing of the EpiPen?
Do you think that a pharmaceutical company should be allowed to charge whatever price the market will pay for prescription drugs? Should prescription drugs be treated differently than any other consumer product?
Congressman Duncan used the word greed when describing Mylans actions. What is the difference between greed and simply the desire for more money? Is greed always bad? Why or why not?