MAC3761 OCTOBER/NOVEMBER 2021 MEMO

OCTOBER –
NOVEMBER
2021

, SOLUTION 1: ANALYSIS OF FINANCIAL & NON –
FINANCIAL INFORMATION, CAPITAL
STRUCTURE & COST OF CAPITAL; BUSINESS
VALUATIONS; & QUALITATIVE FACTORS
(a) Financial Analysis

Note that in an exam scenario you do not have to show all formulas and you
do not have to show all the ratios shown. You should choose according to
marks and according to relevance depending on scenario

(i) Revenue analysis

Ratio Formula Year Comment
2020 2019
Change in revenue There was an increase in sales
( ) from 2019 to 2020, which was
Total Revenue mainly pushed by the increase
in revenue of the United
= 4.21% Kingdom operation supported
by smaller increases in other
Hospital & primary care ( ) business units. The growth may
– South Africa also have been caused by
increases in the demand of
= 0.05%
health facilities due to COVID
Hospital & primary care and also inflation
– United Kingdom ( )


= 13.99%

( )
Pharmacy operations –
South Africa
= 6.57%




Proportion of sales per Proportion of sales from
business unit Pharmacy operations increased
whilst decreases were
Hospital & primary care experienced in Hospital &
– South Africa Primary Care Operations for
both South Africa & UK. This
may be due to many people
utilizing pharmacy operations
rather than hospitalization due
Hospital & primary care to COVID
– United Kingdom