Find a recent report that includes financial statements for a healthcare organization, or an organization that interests you. After reviewing the financial statements, use some rough horizontal,...

McKesson Corp is one of the leading company of US healthcare Industry that deals in providing healthcare information technology, distributing pharmaceuticals, manufacturing of medical supplies and other management tools.
The financial statements including Income Statement and Balance sheet of the company is taken from year 2017 to 2021 and the Trend analysis and Vertical analysis are conducted to explore any significant changes in business performance.
Graph 1 shows the profitability trend of the company over past 5 years.
Graph 1
The graph shows a consistent trend of Gross Income and Operating income that gradually increase over time, although there is a sharp decline in Net income in 2018 and 2021 and it turns to be a huge loss of $4,538 in year 2021.
A consistent trend in Gross income and Operating income shows the revenue, COGS and other operating expenses are also consistent. Any unusual variation in non-operating expenses leads to sharp decline in Net income.
Graph 2 shows the COGS as percentage of revenue over past 5 years.
Graph 2
The COGS varies between 94.10% and 94.70% and it is a good consistent range. Graph 3 shows the other items of Income statement as a percentage of Revenue.
Graph 3
Depreciation expenses, SG&A expenses and Interest expenses and unusual expenses are in small fraction of sales. Their trends are almost consistent with small range variation except Unusual expenses that rises to 3.59% of revenue in 2021 against the average figure of 0.79%. This is the main reason we observe sharp decline in the Net income in 2021.
Graph 4 shows the trend of EPS over past 5 years.
Graph 4
EPS is quite high at 22.14 in 2017 that falls to 0.32 in 2018. Afterwards, a gradual improvement is observed and in 2020, it touches to 4.95. In 2021, it sharply falls to -28.26. Thus, EPS shows a wide variability over past 3 years and negative EPS in 2021 is the result to loss incurred in the same year.
Graph 5 shows the trend of selected items of Assets over past 5 years
Graph5
Cash and Cash equivalents, Account receivable, Inventories and Property, Plant & Equipment show a positive upward trend over past 5 years, although the Intangible assets gradually falls from 2018 onwards.
Graph 6 shows the trend of selected liabilities items over past 5 years.
Graph 6
A gradual improvement is observed in sele4cted items of liabilities like Account payable, current portion of long term debt, other current liabilities, Long term debt and other liabilities.
Graph 7 shows the trends of selected items od Shareholders’ equity over past 5 years.
Graph 7
Paid-in capital gradually increases but all other items decreases over past 5 year. Treasury stocks remain negative in past 5 years and after 2019, it sharply declines further. Retained earnings also sharply fall in 2021 and total shareholders’ equity shows a dramatic turn in 2021 when it turns to be negative -$21 million from $5,092 level...