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Prompt 4 - Gentiva Health Services - Essay Example
Finance & Accounting
Pages 4 (1004 words)
Financial Analysis of Gentiva in 2011 and 2012 of submission Introduction The financial performance of a company determines its lifespan in the market. It is the quest of every company to cut down expenses and raise the level of revenue accruing from daily activities…
This would ensure that the activities of the company remain profitable in both short-term and long-term basis. The company recorded a noticeable decrease in revenue in 2012. Previously, the company has made several acquisitions and dispositions. This is likely to have been one of the main attribute that led to this loss amidst other factors. This paper explores the financial trend in Gentiva for 2011 and 2012. Financial Performance In the past two years, Gentiva has experienced significance changes in its financial performance. This is largely dependent on the strategic changes that the organization has decided to implement. Considering the financial results of the 2011 and 2012 periods, the following analysis can be reached. The company registered a 6% decrease in revenue for the third quarter of 2012 compared to the same period 2011(from $449.7million to $424.4 million). The loss from continuing operations decreased tremendously from $15.82 per diluted share in 2011 to $0.02 in 2012 third quarter. The company recorded $19.1 million non-cash write-off in connection with a rebranding of its operations into one name. For the same period in 2011, the company registered a $643.3 million for a non-cash impairment of a failed test of its goodwill. ...