STUDENT REPLIES STUDENT REPLY #1 Vanessa Deleon Guerrero When conducting surveillance, you are closely monitoring a person’s activities. Investigators or detectives watch their every move, at home, work, where they eat, shop all while being unnoticeable. When detectives conduct surveillance, they still need to ensure that they are respecting the person’s privacy. For example, detectives will not take photos of the person while they are in the shower. If the person is outside or in an area that has public view, then they can take photos of that person. They must conduct their surveillance in an orderly manner, without causing panic to the public in order to ensure public safety. Private companies such as Facebook, Instagram or twitter are used for people to express themselves. However, what is posted on their social media becomes public and they make their lives public for everyone to see. If someone posted that they were just at a park where a shooting happened, law enforcement can use that to interview them because it puts them at the scene of the crime. However, private companies, for example like phone companies should not use data like text messaging for their benefit. They should not be allowed to read their customers’ messages or listen in on their phone calls. That is a true invasion of privacy. Reference Brandl, S. (2018). Criminal investigation (4th ed.). Thousand Oaks, CA: SAGE Publications. Bedi, M. (2016). The curious case of cell phone location data: Fourth Amendment doctrine mash-up Links to an external site... Northwestern University Law Review, 110(2), 507–524 STUDENT REPLY #2 Danielle Berlus Hello everyone, when I think of surveillance, I think of all the places that they put cameras like the ones at streetlights that catch you speeding or when they are looking for a suspect and they look to facial recognition devices. I think it is hard to balance what is expected to be private. I don't think anything is private anymore except possibly the bathrooms and even then, someone maybe recording you. Our cell phones I think are being monitored by so many companies and even those who want to steal our personal data as well. "The government tracks movements through the acquisition of cell phone location data: historical cell phone location data, real-time cell phone location data, and actively "pinging" a cell phone for location data. Cell phone providers store location data as the normal part of their business of providing service. Police, in turn, can request that cell phone providers hand over this location data for a suspect over a set period of time. This information is classified as historical cell phone location data. This data stands in contrast to real-time location data. Whereas the former focuses on past locations, real-time data provides locations as they actually occur. Here, cell phone providers, upon request, give police contemporaneous data on the location of the nearest cell tower for tracking p.

1. STUDENT REPLIES
STUDENT REPLY #1 Vanessa Deleon Guerrero
When conducting surveillance, you are closely monitoring a
person’s activities. Investigators or detectives watch their every
move, at home, work, where they eat, shop all while being
unnoticeable. When detectives conduct surveillance, they still
need to ensure that they are respecting the person’s privacy. For
example, detectives will not take photos of the person while
they are in the shower. If the person is outside or in an area that
has public view, then they can take photos of that person. They
must conduct their surveillance in an orderly manner, without
causing panic to the public in order to ensure public safety.
Private companies such as Facebook, Instagram or twitter are
used for people to express themselves. However, what is posted
on their social media becomes public and they make their lives
public for everyone to see. If someone posted that they were
just at a park where a shooting happened, law enforcement can
use that to interview them because it puts them at the scene of
the crime. However, private companies, for example like phone
companies should not use data like text messaging for their
benefit. They should not be allowed to read their customers’
messages or listen in on their phone calls. That is a true
invasion of privacy.
Reference
Brandl, S. (2018). Criminal investigation (4th ed.). Thousand
Oaks, CA: SAGE Publications.

2. Bedi, M. (2016). The curious case of cell phone location data:
Fourth Amendment doctrine mash-up Links to an external site...
Northwestern University Law Review, 110(2), 507–524
STUDENT REPLY #2 Danielle Berlus
Hello everyone, when I think of surveillance, I think of all the
places that they put cameras like the ones at streetlights that
catch you speeding or when they are looking for a suspect and
they look to facial recognition devices. I think it is hard to
balance what is expected to be private. I don't think anything is
private anymore except possibly the bathrooms and even then,
someone maybe recording you. Our cell phones I think are
being monitored by so many companies and even those who
want to steal our personal data as well.
"The government tracks movements through the acquisition of
cell phone location data: historical cell phone location data,
real-time cell phone location data, and actively "pinging" a cell
phone for location data. Cell phone providers store location data
as the normal part of their business of providing service. Police,
in turn, can request that cell phone providers hand over this
location data for a suspect over a set period of time. This
information is classified as historical cell phone location data.
This data stands in contrast to real-time location data. Whereas
the former focuses on past locations, real-time data provides
locations as they actually occur. Here, cell phone providers,
upon request, give police contemporaneous data on the location
of the nearest cell tower for tracking purposes. Pinging a cell
phone is a variation on the collection of contemporaneous cell
phone location data. This time, however, the government does
not wait for the phone itself to send its routine signal to the cell
tower. Rather, the police request that cell phone providers send
an affirmative signal to the suspect's phone to monitor her

3. location via cell towers." (Chicago VOL 110, ISS 2, 2016)
From this information about cell phones, we are being
monitored at all times. I think the only way to truly have
balance is to not have technology and go stay somewhere with
limited surveillance. I do not think it matters whether we
differentiate between government intrusion and private
companies who use citizens’ online data to surveil because we
are going to be watched no matter what.
Reference:
Chicago VOL 110, ISS 2 (2016)
https://www.proquest.com/docview/1773932167?accountid=148
72
Andrew Morrissey
Nitin Narra
Lindsey Row
MBA 675
Team Project, Part Three
St. Ambrose University

4. As LabCorp continues to see positive growth, corporate
governance has been adopted into the Company’s goals,
initiatives and organizational structures. According to the
Company’s 2021 Corporate Responsibility Report, “Our
corporate governance standards not only dictate our internal
conduct, they also guide our external business practices with
customers, shareholders, scientific partners, as well as other
companies within our industry,” (LabCorp, 2022).
LabCorp leadership consists of a board of directors and an
executive leadership team. The board includes ten directors, all
of whom serve on various subcommittees focused on initiatives
such as auditing, human capital and quality assurance. The
executive leadership team has nine members, all of whom
manage key organizational sectors such as marketing,
environmental sustainability, compliance and the CEO of the
company’s largest segment, LabCorp Diagnostics.
Through LabCorp Diagnostics (Dx), the Company provides
routine and specialized lab testing services at over 2,000
locations worldwide. Through LabCorp Drug Development
(DD), the Company conducts drug development, clinical drug
trials and provides technology solutions for medical
professionals and their patients worldwide (LabCorp, 2022).
LabCorp’s corporate governance and organization structure
lends itself to the positive growth the Company has garnered
both in the healthcare industry and through shareholders and the
stock market. In order to properly invest in corporate growth,
capital and confidence from shareholders are essential.
LabCorp’s past successes with its diversified services and
products through its Dx and DD segments are great proof for
investors that the Company is making smart investments and
using capital wisely. Additionally, discussed in the previous
section, LabCorp held favorable market valuation ratios such as
a price/earnings ratio, EV/EBITDA and market/book ratio.
In summary, through subcommittees and detailed corporate

5. responsibility initiatives, LabCorp leadership appears to be
constantly exploring new opportunities for growth, meeting
regulatory standards and finding ways to instill confidence in
its shareholders.
“DaVita is guided by its Mission—to become the provider,
partner and employer of choice—and a set of Core Values—
Service Excellence, Integrity, Team, Continuous Improvement,
Accountability, Fulfillment and Fun—which are reinforced at
all levels of the organization,” (DaVita, 2022).
DaVita is committed to strong corporate governance policies
and practices, as well as compliance with federal and state laws.
DaVita’s corporate governance is composed of a board and a
committee. The Board will determine its leadership structure in
a manner that it determines to be in the best interests of the
Company and its stockholders, including the selection of the
Chair of the Board (the “Chair”). As of June 1, 2020, the
position of Chair shall be held by an independent director of the
Board (an “independent director”) and shall not be held by an
executive officer, including the Chief Executive Officer of the
Company (the “CEO”).
The Board may form committees that consist of one or more
Directors in accordance with the Bylaws of the Company. The
Board shall at all times have an Audit Committee, a
Compensation Committee and a Nominating and Governance
Committee. This governance and organizational structure have
an immense impact on daily activities and operations of DaVita.
The valuations discussed in part two have direct correlation
with decisions made by these committees. The ratios may not
seem like they have a relation with the structure and governance
of an organization, but they truly do.
Stockholders gain important information from committee
decisions, and this can have a direct impact on stock prices and
how DaVita and other companies can be valued amongst
investors. Corporate governance is important because it creates
a system of rules and practices that determines how a company
operates and how it aligns the interest of all its stakeholders.

6. Good corporate governance leads to ethical business practices,
which leads to financial viability. In turn, that can attract
investors.
The organizational structure of Quest Diagnostics is a bit
complex. The company is organized into three segments:
Diagnostic Information Services (DIS), Diagnostic Insights
(DI), and Integrated Diagnostics (ID). DIS provides diagnostic
testing and information services to patients, physicians,
hospitals, health plans, and employers (Rahman et al.,2020). DI
is a provider of diagnostic insights and information services to
physicians, hospitals, and other healthcare organizations. ID
provides diagnostic testing and information services to patients,
physicians, hospitals, and health plans.
The company's complex organizational structure could be
one reason why its valuation ratios are not as favorable as its
peers. For example, its P/E ratio is 14.05, which is higher than
the average P/E ratio for S&P 500 companies. Additionally, its
P/E/G ratio is 0.76, which is lower than the average P/E/G ratio
for S&P 500 companies.
One reason why Quest Diagnostics' valuation ratios may
not be as favorable as its peers are because of its complex
organizational structure. The company is organized into three
segments: Diagnostic Information Services (DIS), Diagnostic
Insights (DI), and Integrated Diagnostics (ID) (Cho et
al.,2019). This complex structure could be one reason why the
company's P/E ratio is 14.05 and its P/E/G ratio is 0.76.
Another reason why Quest Diagnostics' valuation ratios
may not be as favorable as its peers are because of its relatively
high debt-to-equity ratio. The company's debt-to-equity ratio
was 1.57 as of September 30, 2020, which is higher than the
average debt-to-equity ratio for S&P 500 companies (Spieth et
al.,2019). This higher debt-to-equity ratio could be one reason
why the company's P/E ratio is 14.05 and its P/E/G ratio is 0.76.
The governance and organizational structure of a company can
have a significant impact on the company's valuation. To

7. compare and contrast the governance and organizational
structures of the companies studied, we will use the following
criteria: board composition, and board independence. A board
that is composed of a majority of independent directors is
generally considered to be more effective than a board that is
not.
Company/organization
Independent directors
Inside directors
LabCorp
8
6
Quest Diagnostics
9
5
DaVita
8
6
From this table, we can see that all three companies have
boards that are composed of a majority of independent
directors. This is considered to be a good thing for shareholders
as it indicates that the board is more likely to make decisions in
their best interests (Talento et al.,2019).
A board that is composed of a majority of independent
directors is generally considered to be more effective than a
board that is not. This lack of affiliation allows them to make
decisions in the best interest of the company and its
shareholders.
References
Cho, S. J., Chung, C. Y., & Young, J. (2019). Study on the
Relationship between CSR and Financial Performance.
Sustainability, 11(2), 343.
Corporate governance. DaVita. (n.d.). Retrieved from
https://www.davita.com/about/corporate-governance
Davita Inc.. corporate governance guidelines I. (n.d.). Retrieved
from

8. https://www.davita.com/-
/media/davita/project/kidneycare/pdf/corporate-
governance/corporate-governance-guidelines-052121.pdf
Laboratory Corporation of America Holdings. (2022, February
25). Form 10‐K. Retrieved from
https://ir.labcorp.com/sec-filings/sec-filing/10-
k/0000920148-22-000015
LabCorp. (2022, March 31). 2021 Corporate Responsibility
Report: Creating a Healthier Tomorrow. Retrieved from
https://ir.labcorp.com/corporate-governance
Labcorp Org Chart. THE ORG. (n.d.). Retrieved from
https://theorg.com/org/labcorp
Rahman, K. S., & Simonson, J. (2020). The Institutional Design
of Community Control. Calif. L. Rev., 108, 679.
Spieth, P., Schneider, S., Clauß, T., & Eichenberg, D. (2019).
Value drivers of social businesses: A business model
perspective. Long Range Planning, 52(3), 427-444.
Taliento, M., Favino, C., & Netti, A. (2019). Impact of
environmental, social, and governance information on economic
performance: Evidence of a corporate ‘sustainability advantage
from Europe. Sustainability, 11(6), 1738.
Velte, P. (2022). Meta-analyses on corporate social
responsibility (CSR): a literature review. Management Review
Quarterly, 72(3), 627-675.

9. Andrew Morrissey
Nitin Narra
Lindsey Row
MBA 675
Team Project, Part Two
St. Ambrose University
DaVita Inc., Laboratory Corporation of America Holdings
(LabCorp), and Quest Diagnostics are three leading companies
in the healthcare facilities and services industry. The following
is an analysis of each company’s market value ratios (or
valuation multiples) followed by an overall ranking of the
companies by market performance and value for shareholders.
“Market value ratios relate a firm’s stock price to its earnings,
cash flow, and book value per share. Market value ratios are a
way to measure the value of a company’s stock relative to that
of another company,” (Brigham & Ehrhardt, 2020, p. 117). In
order to establish consistency throughout our analysis, all
market value ratios were sourced on the same day (November 1,
2022) and from the same sources (Stock Analysis, MacroTrends
and Zacks Investment Research).
Price/earnings (P/E) ratio is calculated by dividing a
company’s latest closing price by its most recent earnings-per-
share (EPS). The P/E ratio is a simple way to assess whether a
stock is over or undervalued and is the most widely used
valuation measure. The following P/E ratios were sourced on
November 1, 2022 from Stock Analysis. DaVita’s P/E ratio was

10. 9.56 (Stock Analysis, 2022). DaVita is on the lower end when
compared to the average P/E ratio for S&P 500 companies,
which is 25 (Murphy, 2022). This can be seen as an attractive
valuation to investors, as having a high P/E ratio could mean
the stock is currently being overvalued. LabCorp’s P/E ratio
was 11.95 (Stock Analysis, 2022). While still lower than the
industry average, LabCorp’s P/E ratio can indicate that LabCorp
is a riskier investment but there are also strong growth
prospects. Lastly, Quest Diagnostics’ P/E ratio was 14.05
(Stock Analysis, 2022). Again, this is lower than the S&P
average but the highest among our companies. A higher P/E is
typically better for the firm but poses more risk or
overvaluation for investors.
Price/free cash flow (P/FCF) ratio is calculated by dividing a
company’s latest price-per-share by its free cash flow-per-share.
The P/FCF ratio examines a company’s ability to generate free
cash flow which affects its stock prices. The average P/FCF for
S&P 500 companies is 14.05. Similar to the P/E ratio, a value
less than this average is generally considered good. The
following P/FCF ratios were sourced on November 1, 2022 from
Stock Analysis. DaVita’s P/FCF ratio was 5.5 (Stock Analysis,
2022). This shows that DaVita’s stock is cheap in relation to its
free cash flow. Quest Diagnostics’ P/FCF was 11.99 (Stock
Analysis, 2022), which shows that its stock is moderately priced
in relation to its free cash flow. Lastly, LabCorp’s P/FCF was
13.58 (Stock Analysis, 2022). While this ratio is still considered
favorable because it is below the average, this does indicate that
LabCorp stock could be overvalued. These ratios align with
each company’s price-per-share, with DaVita stock being the
lowest ($70.38 at closing) and LabCorp’s the highest ($222.55
at closing) of the group.
EV/EBITDA is calculated by dividing a company’s enterprise
value by its EBITDA (Earnings before interest, taxes,
depreciation, and amortization value). This valuation ratio
assesses a company’s value, including debt and liabilities, to
true cash earnings. EV/EBITDA is helpful when comparing

11. companies within the same industry. Generally, an EV/EBITDA
below 10 is considered favorable (Maverick, 2022). The higher
a company’s EV/EBITDA, its stock can be viewed as
overpriced. The following EV/EBITDA ratios were sourced on
November 1, 2022 from Stock Analysis. LabCorp’s EV/EBITDA
was 7.97, DaVita’s was 9.14 and Quest Diagnostic’s was 9.21
(Stock Analysis, 2022). Each company’s ratios would be
considered healthy and a good investment for shareholders.
Market/book (M/B) ratio (or price/book ratio) is another helpful
ratio for investors. M/B ratio is calculated by dividing a
company’s market price-per-share by its book value-per-share.
M/B ratio takes into account a company’s past and present
through the cumulative amount stockholders have invested and
investor’s expectations of future cash flows (Brigham &
Ehrhardt, 2020, p. 119). The following M/B ratios were sourced
on November 1, 2022 from MacroTrends. LabCorp’s M/B ratio
was 2.04, Quest Diagnostics was 2.59 and DaVita’s was 10.6
(MacroTrends, 2022). While all values are above 1 (which is
generally favorable), DaVita’s M/B ratio is more than triple
those in its peer group. This is not a good look for DaVita as it
shows the market value could be too high and may be ready for
a fall.
Lastly, price/earnings-to-growth (P/E/G) ratio is calculated by
dividing a company’s P/E ratio by its annual EPS growth. P/E/G
ratio can help determine the relative trade-off between the price
of a stock, the earnings generated per share, and the company's
expected growth. Generally, a P/E/G ratio under 1 is considered
favorable. The following P/E/G ratios were sourced on
November 1, 2022 from Zacks Investment Research. Quest
Diagnostics’ P/E/G ratio was 0.76, LabCorp’s was 1.61 and
DaVita’s was 1.64 (Zacks Investment Research, 2022). From
this we can assume that LabCorp and DaVita stock could be
overvalued, which is consistent with previous valuation ratio
findings.
In order to efficiently rank our companies, we first gave each
company a ranking of 1-3 for each individual ratio, with 1 being

12. “first” or the most favorable and 3 being “last” or the least
favorable. Scores for each company were then added together
for a final number, with the lowest score being most favorable.
In total, LabCorp received a score of 9, Quest Diagnostics
received a score of 10 and DaVita received a score of 11. We
find that our rankings for Part Two are the consistent with our
findings in Part One, which is as follows:
1. LabCorp
2. Quest Diagnostics
3. DaVita
References
Brigham, E. F., & Ehrhardt, M. C. (2020). Financial
management: Theory & practice. Cengage Learning.
DaVita, Inc. (DVA) financial ratios and metrics. (n.d.).
Retrieved November 1, 2022, from
https://stockanalysis.com/stocks/dva/financials/ratios/
DaVita, Inc. Price to Book Ratio 2010-2022: DVA.
Macrotrends. (n.d.). Retrieved November 1, 2022, from
https://www.macrotrends.net/stocks/charts/dva/davita/price-
book
Laboratory Corporation of America Holdings (LH) financial
ratios and metrics. (n.d.). Retrieved November 1, 2022, from
https://stockanalysis.com/stocks/lh/financials/ratios/
Laboratory of America Holdings Price to Book Ratio 2010-
2022: LH. Macrotrends. (n.d.). Retrieved November 1, 2022,
from
https://www.macrotrends.net/stocks/charts/LH/laboratory-of-
america-holdings/price-book
Maverick, J. B. (2022, July 8).
What is considered a healthy EV/EBITDA ?
Investopedia. Retrieved November 5, 2022, from
https://www.investopedia.com/ask/answers/072715/what-
considered-healthy-evebitda.asp Murphy, C. B. (2022,
September 21). Using the price-to-earnings ratio and PEG to

13. assess a stock. Investopedia. Retrieved November 5, 2022, from
https://www.investopedia.com/investing/use-pe-ratio-
and-peg-to-tell-stocks-future/
Quest Diagnostics Incorporated (DGX) financial ratios and
metrics. (n.d.). Retrieved November 1, 2022, from
https://stockanalysis.com/stocks/dgx/financials/ratios/
Quest Diagnostics Price to Book Ratio 2010-2022: DGX.
Macrotrends. (n.d.). Retrieved November 1, 2022, from
https://www.macrotrends.net/stocks/charts/dgx/questdiagnostics
/price-book
Zacks Investment Research. (2022, November 1).
DaVita (DVA) PEG Ratio. Zacks Investment Research.
Retrieved November 1, 2022, from
https://www.zacks.com/stock/chart/LH/fundamental/peg-ratio-
ttm
Zacks Investment Research. (2022, November 1).
Laboratory Corp. of America (LH) PEG Ratio. Zacks
Investment Research. Retrieved November 1, 2022, from
https://www.zacks.com/stock/chart/LH/fundamental/peg-ratio-
ttm
Zacks Investment Research. (2022, November 1).
Quest Diagnostics (DGX) PEG Ratio. Zacks Investment
Research. Retrieved November 1, 2022, from
https://www.zacks.com/stock/chart/LH/fundamental/peg-ratio-
ttm

14. Andrew Morrissey
Nitin Narra
Lindsey Row
MBA 675
Team Project, Part One
St. Ambrose University
DaVita Inc., Laboratory Corporation of America Holdings
(LabCorp), and Quest Diagnostics are three leading companies
in the healthcare facilities and services industry. The following
is an analysis of each company based on its financial strengths
and weaknesses, an analysis of industry strengths and
weaknesses and lastly, a comparative ranking of each
companies’ stock performances in the secondary market.
In 2021, DaVita Inc’s operating income was $1.797
billion, operating cash flow from continuing operations was
$1.931 billion, and free cash flow from continuing operations

15. was $1.133 billion. DaVita invested $407 million in
acquisitions and development in their businesses and $1.546
billion on repurchases of nearly 14 million shares of their
common stock, reducing their shares outstanding by more than
11 percent since the beginning of the year. When looking at the
raw financial statements, you can see that revenue is gradually
increasing per year. Also, gross profit has seen gradual
increases over the past couple years.
DaVita’s biggest strength was its growth in net investment
income. This number on the income statement was very poor in
2017 and 2018. DaVita has shown a massive jump in this area,
and it will only bring more benefits to their company. Net
investment indicates how much a company is spending to
maintain and improve its operations. If net investment is
positive, the company is expanding its capacity.
Operating expense is something that DaVita may need to look
into if it keeps getting larger. If operating costs become too
high, management may need to increase the price of their
products in order to maintain profitability. DaVita could risk
losing customers to competitors who are able to produce similar
goods at a lower price point.
The total contractual obligation includes non refundable
amounts a lessee is contractually obligated to pay to the lessor.
DaVita is obligated to pay a lot of money to others in the
forthcoming future. There will obviously always be money put
towards this account, but this amount must come down
otherwise this weakness could be exploited in the future.
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 Company’s 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.

16. 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
Company’s 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).
LabCorp 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 LabCorp.
LabCorp reported a total revenue of $16,120.9 billion in 2021
(increase of 13.39 percent from the previous year) total
operating profit of $3,302.6 billion in 2021 (increase of 10.73
percent from the previous year) and total liabilities of $10, 112
billion in 2021 (decrease of 5.93 percent from the previous
year).
Lastly, Quest Diagnostics' gross profit was $4,209,000 billion, a
-6.462 percent decrease from the previous year. Furthermore,
the company recorded 2021 total revenues of $1.078 billion, a
drop from the previous year of -1.909 percent. These numbers
can indicate a decline in consumer interest in the company's
goods and services. Additionally, operational cash flow for
2021 increased by 20.80 percent from 2020 to $2.381 million.
These benefits might also be attributable to investments made
by the business.
The amount of cash and cash equivalents recorded for 2021 was
$8.72 million, a 24.6 percent decrease from the previous year.
In 2021, net property, plant, and equipment (PP&E) increased
3.27 percent to $2,304 million. With the company's income

17. rising, a rise in PPE makes sense because more PP&E is
required to expand services and clientele. Furthermore, total
liabilities fall by more than 1.20 percent in 2021 compared to
2020. (Quest Diagnostics, 2020).
In 2021, inventory fell by 6.72 percent. The company is
effectively "doing worse" with less given the decline in overall
revenue.This may be explained by a shift in the company model
to a menu that focuses more on customer service, but it could
also be a sign of unsustainably aggressive business methods. In
2021, compared to the previous year, accumulated depreciation
grew by 3.208 percent. As a result, the company now has a
bigger obligation.
Quest Diagnostics reported a total revenue of $1,078,8 billion in
2021 (decrease of -1.909 percent from the previous year), total
operating profit of $2,381 million in 2021 (increase of 20.8
percent from the previous year) and total liabilities of $70,49
million in 2021 (decrease of -1.20 percent from the previous
year).
Healthcare services is one of the largest and fastest growing
industries (Stasha, 2022). In recent years the industry has been
largely impacted by the coronavirus pandemic. The pandemic
identified the ability of many companies to provide
telehealth/virtual services which expanded opportunities to
serve more clients. Additionally, healthcare companies have the
ability to diversify their offerings (For example, LabCorp offers
drug research and development, manufactures testing supplies
and more). While LabCorp has found success diversifying its
offering, other companies find success in specialization.
For example, DaVita is known specifically for providing kidney
care, which is an area that separates themselves from many
others in the industry. There are many organizations that
provide health care services, so being able to separate yourself
from others with special expertise and experience is key.
In order to enhance outcomes for patients, healthcare systems,
and companies, efficiency is necessary to regulate procedures
and organizational structure. The functionality of the latest

18. machinery is a wonderful asset for healthcare organizations
since it not just provides significant reliability of care but also
reduces costs. To benefit individuals, the healthcare system uses
a wide range of professional tools, gadgets, and medicines in
research laboratories, health care facilities, and centers.
Conversely, as the industry grows it has proven difficult to
recruit and retain the necessary talent to maintain these
advances in technology and expanded services. “A Sept. 21
MGMA Stat poll found that 73 percent of medical practices
reported “staffing” as the biggest pandemic challenge heading
into 2022,” (Medical Group Management Association, 2021).
Advances in technology, as well as a myriad of factors mean
that healthcare systems have large, fixed expenses, which often
continue, making it challenging to keep finances flexible.
Tariffs also greatly impact the industry’s supply chains on a
global scale (Florida Tech Online, 2022).
As of October 26, 2022, LabCorp was listed at $231,96 per
share, Quest Diagnostics at $143.51 per share and DaVita at
$96.99 per share. The market expected LabCorp (LH) to deliver
a year-over-year decline in earnings on lower revenues when it
reports results for the quarter ended September 2022. This was
consistent with LabCorp’s earnings call, released on October
27, 2022 (LabCorp, 2022).
DaVita HealthCare (DVA) came out with quarterly earnings of
$1.45 per share, missing the Zacks Consensus Estimate of $1.65
per share. This compares to earnings of $2.36 per share a year
ago. These figures are adjusted for non-recurring items. This
quarterly report represents an earnings surprise of -12.12
percent. This has shown an enormous drop in their stock price.
The stock is currently down $24.09 as of October 28, 2022.
DaVita HealthCare, which belongs to the Zacks Medical -
Outpatient and Home Healthcare industry, posted revenues of
$2.95 billion for the quarter ended September 2022, missing the
Zacks Consensus Estimate by 1.08 percent. This compares to
year-ago revenues of $2.94 billion. The company has topped
consensus revenue estimates just once over the last four

19. quarters (Yahoo! Finance, 2022).
Results for the three months ending September 2022 have been
released by Quest Diagnostics, and they show declining profits
and revenue compared to the same period last year. The average
EPS prediction for the fiscal quarter ending December 2022 has
fallen over the previous week from 1.96 to 1.9 (3.06 percent)
and over the span of a month from 1.94 to 1.9 (2.06 percent)
(NASDAQ, 2022).
To establish consistency, each company’s market ranking was
based on the company’s debt-to-equity ratio. Debt-to-equity
ratio is an important metric in corporate finance. It is a measure
of the degree to which a company is financing its operations
with debt rather than its own resources. According to 2021
financial statements from Morning Star, the market ranking of
these companies based on debt-to-equity ratios is the following
(MorningStar, 2022):
1. LabCorp (LH) , .70
2. Quest Diagnostics (DGX)
3. DaVita (DVA)

20. References
DaVita, Inc. Financial Information. Morningstar, Inc. (n.d.).
Retrieved October 28, 2022, from
https://www.morningstar.com/stocks/xnys/dva/financials
Financial challenges in Healthcare. Florida Tech Online. (2022,
January 7). Retrieved October 30, 2022, from
https://www.floridatechonline.com/blog/healthcare-
management/financial-challenges-in-healthcare/
Labcorp announces 2022 third quarter results. Labcorp. (2022,
October 27). Retrieved October 30, 2022, from
https://ir.labcorp.com/news-releases/news-release-
details/labcorp-announces-2022-third-quarter-results
Laboratory Corp of America Holdings LH Financial
Information. Morningstar, Inc. (n.d.). Retrieved October 28,
2022, from
https://www.morningstar.com/stocks/xnys/lh/financials
Laboratory Corporation of America Holdings. (2022, February
25). Form 10‐K. Retrieved from
https://ir.labcorp.com/sec-filings/sec-filing/10-
k/0000920148-22-000015
Medical Group Management Association (2021, September 21).
Staffing, uncertainty among top pandemic challenges for
medical groups heading into 2022. | Medical Group
Management Association | Retrieved October 30, 2022, from
https://www.mgma.com/data/data-stories/staffing,-
uncertainty-among-top-pandemic-challenge
Stasha, S. (2022, September 29). Healthcare statistics for 2021:
Policy advice. Healthcare statistics for 2021 | Policy Advice.
Retrieved October 30, 2022, from
https://policyadvice.net/insurance/insights/healthcare-
statistics/

21. Quest Diagnostics Incorporated Common Stock (DGX) Earnings
Report Date | Nasdaq. (2022). Nasdaq.com.
https://www.nasdaq.com/market-
activity/stocks/dgx/earnings
Quest Diagnostics Financial Information. Morningstar, Inc.
(n.d.). Retrieved October 28, 2022,
from
https://www.morningstar.com/stocks/xnys/dgx/financials
Zacks Equity Research. Davita Healthcare (DVA) Q3 earnings
and revenues lag estimates. Yahoo! Finance. Retrieved October
28, 2022, from
https://finance.yahoo.com/news/davita-healthcare-dva-
q3-earnings-114511139.html
The following is a final analysis of DaVita, LabCorp and Quest
Diagnostics’ recent strategic actions, how they harness and
affect each company’s financials, recommendations for
improving each company’s financial policies and reasonings as
to which company will be the most successful in the future.
DaVita has seen some ups and downs recently when it comes to
financial performance. Back in October, there was a major
plummet in their stock, which was a result of a devastating
third-quarter report. This report made DaVita suffer their worst
performance in more than two decades, after the dialysis
company reported their third quarter that fell well below
expectations and slashed its full-year outlook, citing declining
treatments and rising labor costs. The stock, 0.93% dove 27.1%
to $70.54, the lowest close since April 3, 2020. Trading volume
swelled to about 5.4 million shares, compared with the full-day
average over the past 30 days of about 629,500 shares. It was
the biggest one-day selloff for the stock since it tumbled 32.2%
on Jan. 19, 2000. DaVita’s CEO stated, "The third quarter was a
challenging quarter for us. Like others in the healthcare
community, negative volume trends due to COVID and

22. continued labor pressure impacted our financial performance
more than expected." said Javier Rodriguez. "Despite this, I'm
incredibly proud of the execution of our teams in a challenging
operating environment and the unwavering focus of our
frontline teammates on patient care. Looking ahead, I remain
confident in our business and ability to leverage our end-to-end
kidney care platform as a differentiated asset."
There are a lot of unknowns and uncertainties that are
hindering DaVita’s financial performances. One way DaVita can
improve their financial policies is by tackling problems as soon
as they arise. It is always very stressful facing financial
problems as a business, but there is help and advice available
that can help DaVita tackle problems before it gets too much to
handle. Therefore, seeking advice from others and looking at
what other healthcare services are doing to attack this problem
is a way to stay ahead. There are also some initial steps DaVita
can take to minimize the impact such as tackling priority debts
first and assessing how they can improve their cash flow
management. I believe DGX is going to be the most successful
company when looking toward the future of each company. This
is a company that others can look at to strive to do the same.
The financial health and growth prospects of DGX demonstrate
its potential to outperform the market, which is why I believe
this is the best company going forward.
LabCorp has found success in navigating - and leading, the
healthcare industry’s ongoing response to COVID-19. Despite
this, LabCorp shareholders have seen underperformance in the
last fiscal year, with shares declining 16.4% compared with the
industry’s 9.1% fall (Zacks Equity Research, 2022).
In October 2022, LabCorp reported third quarter revenue at
$3.6 billion, versus $4.1 billion in the previous year.
Additionally, diluted EPS was $3.90 versus $6.05 in the
previous year, and a free cash flow of $270 million versus last
year’s $650 million (LabCorp, 2022). The revenue decrease was
cited as a result of a decrease COVID-19 PCR test demand,
forgein currency translation and acquisition offsets. Similar

23. reasoning was also provided for LabCorp’s year-to-date results,
which have been in “red” for the first nine months of 2022
(LabCorp, 2022).
However, many analysts still regard LabCorp as a “buy” for its
potential earnings. LabCorp aims to align its expansion goals
strategically and with the needs of the industry, from corporate
partnerships to everyday patients. Recent strategic actions by
LabCorp include the continued prioritization of its Drug
Development sector, industry acquisitions and partnerships, and
filing for a mixed shelf offering (Block, 2022).
As the demand for COVID-19 testing decreases, LabCorp’s
Drug Development sector has protected the company from any
sort of drastic decrease in revenue. This diversification of
revenue streams has benefited the company and helped growth
remain stable. Additionally, LabCorp reported the completion of
transactions that establish a long-term relationship with
Ascension laboratories. The company stated that acquiring and
managing Ascension labs in over 10 states will allow LabCorp
to expand access and services for both patients and providers
(LabCorp, 2022). Lastly, in November 2022 LabCorp filed for a
mixed shelf offering. This essentially means that the company
has filed with the SEC to issue securities at an undisclosed time
in the future for a strategic reason (Johnson, 2022). LabCorp
has stated the proceeds will be used for “general corporate
purposes” (Block, 2022).
Two key recommendations for the future of LabCorp include
using the mixed shelf offering in a way that will benefit
shareholders and to continue the company’s diversified revenue
stream model. Although the purpose was not disclosed, it is
imperative for LabCorp to use the mixed shelf offering proceeds
in a way that will benefit its shareholders. As a public company,
executives do have a fiduciary responsibility to its stakeholders.
Using the mixed shelf offering in a way that will dilute the
company’s shares could create distrust and decrease shareholder
confidence. Additionally, LabCorp’s strategic corporate
structure continues to allow for growth and value provided to

24. patients and the industry at large.
In conclusion, based on LabCorp’s recent strategic actions,
shareholder investment and our financial analysis throughout
the course, LabCorp shows a high potential to be the most
successful of the group in the future. Diversification over
specialization and rapid expansion have been key for LabCorp’s
growth and success.
Quest Diagnostics-
Need to write on this company-Our Answer
References
Block, J. (2022, November 18). Labcorp files for mixed shelf
offering (NYSE:LH). SeekingAlpha. Retrieved December 10,
2022, from
https://seekingalpha.com/news/3909835-labcorp-files-
for-mixed-shelf-offering
DaVita. (2022, October 28). Davita Inc. 3rd quarter 2022
results. DaVita Inc. 3rd Quarter 2022 Results. Retrieved
December 10, 2022, from
https://www.prnewswire.com/news-releases/davita-inc-
3rd-quarter-2022-results-301662090.html
Johnson, J. (2019, September 9).
Can you explain what a mixed shelf is? for example,
Raytheon announced a $3 billion mixed shelf. Investment
House. Retrieved December 10, 2022, from
https://www.investmenthouse.com/can-you-explain-
what-a-mixed-shelf-is-for-example-raytheon-announced-a-3-
billion-mixed-shelf/
Kilgore, T. (2022, October 28). Dialysis company Davita Stock
suffered worst day in 22 years after Big Profit Miss,
disappointing outlook. MarketWatch. Retrieved December 10,
2022, from
https://www.marketwatch.com/story/dialysis-company-
davita-stock-suffering-worst-day-in-22-years-after-big-profit-
miss-disappointing-outlook-11666983580

25. Laboratory Corporation of America Holdings. (2022, October
27). Form 8‐K. Retrieved from
https://ir.labcorp.com/static-files/1be22ad3-0829-466d-
8b9e-b9299ca5a8d3
Zacks Equity Research. (2022, December 9). Here's Why
Investors Should Retain LabCorp (LH) Stock for Now.
Retrieved from
https://www.nasdaq.com/articles/heres-why-investors-
should-retain-labcorp-lh-stock-for-now-0
Public