This document is a presentation by Monisha S for their summer project analyzing the comparative financial performance of Apollo Hospitals and its competitors. It includes an introduction to the company profile of Apollo Hospitals, the objectives and methodology of the project which involves a ratio analysis of Apollo and its competitors over the past 5 years. The results and discussion section presents several graphs analyzing trends in profitability, efficiency, liquidity and solvency ratios between the companies.

1. COMPARATIVE FINANCIALANALYSIS OF APOLLO HOSPITALS AND ITS COMPETITOR
Summer Project presentation
by
MONISHA S
(2113059)
Under the guidance of
FACULTY GUIDE NAME
PROF R. SHRUTI
Thiagarajar School of Management
OCTOBER - 2022
07-11-2023 MONISHA S-2113059 1

2. CONTENTS OF PRESENTATION
1. Introduction
2. Review of Literature
3. Statement of the Problem
4. Research Motivation / Need of the Study
5. Objectives and Scope
6. Research Methodology (if applicable)
7. Results & Discussion
8. Suggestions and Conclusion
9. Limitations & Scope for Further Research
07-11-2023 MONISHA S-2113059 2

3. ABOUT SIP
• Finance and accounts Internship in Apollo Hospitals Enterprises Limited.
• Duration - May 11th, 2022, to July 11st, 2022
• Location- Madurai.
• Mentor – Prof.Shruti. R
• Work done
• Financial Analysis of apollo hospitals and its competitors using ratio analysis
• Hands on experience in internal works of accounting department.
07-11-2023 MONISHA S-2113059 3

4. COMPANY PROFILE
• Apollo hospitals enterprise limited (AHEL) is a leading private
sector healthcare provider in Asia.
• It is the first group of hospitals that pioneered the concept of
corporate healthcare delivery in India
• Founded:1983
• Founder: Prathap C. Reddy
• Headquarters: Chennai
• No of hospitals:71
• Market capitalization:631.78 billion
07-11-2023 MONISHA S-2113059 4

5. LEARNINGS FROM INTERNAL ACCOUNTS
DEPARTMENT
Prepared Flow chart and
process chart for
accounting department.
Monthly closing entries on
Oracle software.
Updated Form 16 for
Doctor’s payment details
Validating SRV bills-Vendor
management.
Updated cost audit sheet
by using cost records of
various department and
specialities for 3 units
Reconciliation of bank
statement in oracle using
Cash Management Module
07-11-2023 MONISHA S-2113059 5

6. INTRODUCTION
• This project is about examining Apollo Hospitals operational
efficiency, liquidity, revenues, and profitability by analyzing
its financial records and statements
• Ratio analysis tool used as an important component that will
aid in the analysis of equity fundamentals.
• Comparative analysis used to identify Apollo’s performance
over time by comparing it to its competitors.
• Earnings Quality check analysis by measuring AEM and REM.
07-11-2023 MONISHA S-2113059 6

7. REVIEW OF LITERATURE
07-11-2023 MONISHA S-2113059 7
Author and year of publishing
Title Abstract
Panayiotis Curtis and Theodore A.
Roupas-2009
Health Care Finance, the Performance of Public
Hospitals and Financial Statement Analysis
This research paper explains about a variety of financial
ratios are examined critically, and combination of them is
proposed as a method of effective financial management
Shreeda Shah and Dr Viral shah-2012
A Study on Financial Performance Using Ratio
Analysis of Visa Steel Limited
This research paper denotes that how the accounting
ratios help to analyze the company's financial position and
take important decisions
Assist. Lecturer. Murtadha Alhilfi-2011
Comparative Ratio Analysis for Financial
Performance Evaluation
This paper explains how shareholders must be certain
about their equity investment and decide whether to
invest in the company, which can be accomplished by
evaluating the company's financial health
Jonny-2016
Efficiency analysis of financial management
administration of abc hospital using financial ratio
analysis method
This paper examined the financial performance of ABC
hospitals and address the various issues with measuring
and presenting its financial performance, financial ratio
analysis was implemented
Ramesh Bhat and Nishant Jain-2006
FinancialPerformance ofPrivate Sector Hospitals in India
Evidence
This paper examines the financial performance of private
hospitals using 25 key financial ratios.
LITERATURE REVIEW (2).zip

8. RESEARCH GAP
07-11-2023 MONISHA S-2113059 8
All the paper explains the financial analysis of the by
computing basic ratios.
For further financial analysis, Earnings quality check has been
performed to analyze company’s accounting information.

9. STATEMENT OF THE PROBLEM
• To figure out contribution of Liquidity,Solvency,Profitability and Efficiency measures towards the
Apollo’s growth by comparing with its competitors.
• To give informed decision about Apollo’s financial position for the shareholders to make an equity
investment in healthcare sector.
07-11-2023 MONISHA S-2113059 9

10. RESEARCH MOTIVATION / NEED OF THE STUDY
To provide useful managerial insights to analysts and investors in order to
determine Apollo's financial direction, whether it is moving in a positive or
negative direction.
To perform earnings quality check analysis for legal management decision
making and reporting in order to achieve reliable and relevant financial
results.
07-11-2023 MONISHA S-2113059 10

11. OBJECTIVES
• To evaluate the Apollo’s subject's progress and
variability in an area of Profitability, liquidity,
efficiency, and solvency.
• To perform earnings quality check of Apollo
hospitals and its competitors.
• To identify the financial strengths and weakness
of apollo hospitals through comparative analysis.
07-11-2023 MONISHA S-2113059 11

12. SCOPE OF THE
STUDY
• The main scope of the study is to properly understand how
the items in the financial statements are interconnected and
influence each other using comparative ratio and trend
analysis.
• The study of Ratio analysis study is based on last 5 years
Annual Reports of Apollo Hospitals and its competitors.
07-11-2023 MONISHA S-2113059 12

13. RESEARCH METHODOLOGY
Research design: Analytical in nature
Data Structure: Secondary Data.
Data collection method: Annual reports, websites and journals.
Tools used: Microsoft Excel.
Techniques used: Comparative ratio analysis, Trend analysis, Regression analysis
07-11-2023
MONISHA S-2113059
13

14. -20.00%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
RETURN
YEAR
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
APOLLO 40.87% 43.83% 87.26% 27.22% 41.12%
FORTIS 5.93% -0.82% -1.02% 0.34% 3.75%
MAX -2.67% 0.59% -3.30% 0.43% 5.17%
RETURN ON EQUITY
APOLLO FORTIS MAX
TREND ANALYSIS-PROFITABILITY
07-11-2023 MONISHA S-2113059 14
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
RETURN
YEAR
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
APOLLO 25.48% 27.44% 45.72% 19.91% 28.89%
FORTIS 6.60% 0.55% 0.18% 1.26% 4.23%
MAX -0.73% 1.97% -0.25% 1.34% 4.77%
RETURN ON CAPITAL
EMPLOYED
APOLLO FORTIS MAX

15. 07-11-2023 MONISHA S-2113059 15
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
RETURN
YEAR
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
APOLLO 21.19% 22.13% 36.96% 16.80% 25.59%
FORTIS 5.89% 0.47% 0.17% 1.20% 4.04%
MAX -0.61% 1.65% -0.20% 1.29% 4.58%
RETURN ON ASSET
APOLLO FORTIS MAX

16. -5.000
0.000
5.000
10.000
15.000
20.000
25.000
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
RETURN
YEAR
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
APOLLO 4.811 7.695 6.010 20.060 17.960
FORTIS -0.198 0.162 -0.412 0.158 -0.363
MAX -0.036 -0.240 -1.196 0.369 -0.129
INVENTORY TURNOVER RATIO
APOLLO FORTIS MAX
EFFICIENCY
07-11-2023 MONISHA S-2113059 16
0.000
0.500
1.000
1.500
2.000
2.500
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
RETURN
YEAR
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
APOLLO 1.605 1.735 1.538 1.735 1.180
FORTIS 1.789 1.903 0.736 0.723 1.111
MAX 2.081 2.102 0.661 0.340 0.765
FIXED ASSET TURNOVER RATIO
APOLLO FORTIS MAX

17. 07-11-2023 MONISHA S-2113059 17
0.000
2.000
4.000
6.000
8.000
10.000
12.000
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
RETURN
YEAR
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
APOLLO 9.546 9.137 10.062 7.545 7.360
FORTIS 9.136 7.714 8.468 9.787 11.397
MAX 4.868 3.599 0.706 3.311 6.461
RECEIVABLES TURNOVER RATIO
APOLLO FORTIS MAX

18. 0.0000
0.2000
0.4000
0.6000
0.8000
1.0000
1.2000
1.4000
1.6000
1.8000
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
RETURN
YEAR
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
APOLLO 1.1151 1.1703 1.5434 0.8705 0.7028
FORTIS 0.0575 0.0452 0.1392 0.1383 0.1231
MAX 0.2540 0.2697 0.0012 0.1872 0.1422
LONG TERM DEBT TO EQUITY
APOLLO FORTIS MAX
SOLVENCY
07-11-2023 MONISHA S-2113059 18
0.000
0.200
0.400
0.600
0.800
1.000
1.200
1.400
1.600
1.800
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
RETURN
YEAR
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
APOLLO 1.115 1.170 1.543 0.870 0.703
FORTIS 0.187 0.213 0.192 0.191 0.175
MAX 0.505 0.517 0.236 0.234 0.189
DEBT TO EQUITY
APOLLO FORTIS MAX

19. 07-11-2023 MONISHA S-2113059 19
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
RETURN
YEAR
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
APOLLO 0.527 0.539 0.607 0.465 0.413
FORTIS 0.157 0.176 0.161 0.161 0.149
MAX 0.336 0.341 0.191 0.189 0.159
DEBT TO ASSET
APOLLO FORTIS MAX
-2.000
0.000
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
RETURN
YEAR
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
APOLLO 8.729 9.015 10.608 5.756 14.026
FORTIS 4.985 0.931 1.106 1.366 3.661
MAX -0.064 1.229 0.242 1.278 14.359
TIME INTEREST EARNED
APOLLO FORTIS MAX

20. 07-11-2023 MONISHA S-2113059 20
0.000
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
20.000
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
RETURN
YEAR
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
APOLLO 10.037 10.306 11.863 7.150 15.721
FORTIS 5.438 1.095 1.729 2.169 4.550
MAX 1.420 2.735 0.269 2.205 18.331
CASH COVERAGE RATIO
APOLLO FORTIS MAX

21. 0.000
0.500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
RETURN
YEAR
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
APOLLO 1.505 1.227 1.191 1.997 2.913
FORTIS 0.731 0.260 0.766 0.816 0.877
MAX 0.840 1.133 4.147 4.046 2.362
CURRENT RATIO
APOLLO FORTIS MAX
LIQUIDITY
07-11-2023 MONISHA S-2113059 21
-0.200
-0.100
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
RETURN
YEAR
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
APOLLO 0.085 0.044 0.037 0.156 0.218
FORTIS -0.029 -0.102 -0.010 -0.008 -0.005
MAX -0.027 0.022 0.597 0.115 0.054
NET WORKING CAPITAL TO
ASSET
APOLLO FORTIS MAX

22. 07-11-2023 MONISHA S-2113059 22
0.000
1.000
2.000
3.000
4.000
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
RETURN
YEAR
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
APOLLO 1.505 1.227 1.191 1.997 2.913
FORTIS 0.293 0.083 0.182 0.142 0.166
MAX 0.675 0.912 0.222 3.338 2.178
QUICK RATIO
APOLLO FORTIS MAX
0.000
0.500
1.000
1.500
2.000
2.500
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
RETURN
YEAR
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
APOLLO 0.224 0.170 0.178 0.268 0.469
FORTIS 0.163 0.023 0.008 0.007 0.002
MAX 0.013 0.013 0.098 2.221 1.273
CASH RATIO
APOLLO FORTIS MAX

23. COMPOSITE RANKING
07-11-2023 MONISHA S-2113059 23
PROFITABILITY APOLLO FORTIS MAX
RETURN ON CAPITAL EMPLOYED 1.00 2.00 3.00
RETURN ON EQUITY 1.00 3.00 2.00
RETURN ON ASSET 1.00 3.00 2.00
AVERAGE 1.00 2.67 2.33
RANK 1.00 2.00 3.00
EFFICIENCY APOLLO FORTIS MAX
FIXED ASSET TURNOVER 1.00 2.00 3.00
INVENTORY TURNOVER 1.00 2.00 3.00
ACCOUNTS RECEIVABLES
TURNOVER 1.00 2.00 3.00
AVERAGE 1.00 2.00 3.00
RANK 1.00 2.00 3.00
SOLVENCY APOLLO FORTIS MAX
DEBT TO EQUITY 3.00 1.00 2.00
LONG TERM DEBT TO EQUITY 3.00 1.00 2.00
DEBT TO ASSET 3.00 1.00 2.00
TIME INTERSET EARNED 1.00 2.00 2.00
CASH COVERAGE 1.00 3.00 2.00
AVERAGE 2.20 1.60 2.00
RANK 3 1 2
LIQUIDITY APOLLO FORTIS MAX
NET WORKING CAPITAL TO
ASSET 1.00 3.00 2.00
CURRENT RATIO 1.00 2.00 1.00
QUICK RATIO 1.00 3.00 2.00
CASH RATIO 1.00 3.00 2.00
AVERAGE 1 2.75 1.75
RANK 1 3 2
RATIO CALCULATIONS.zip
COMPOSITE RANKING.xlsx

24. EARNINGS QUALITY CHECK-AEM,REM
07-11-2023 MONISHA S-2113059 24
ACCRUAL EARNINGS MANAGEMENT
COMPANY ACC EM- JONES
ACC EM - MODIFIED
JONES VR- OHLSON VR-EASTON HARRIS AVERAGE RANK
APOLLO HOSPITALS 1 1 3 3 2 1
FORTIS HEALTHCARE 2 2 2 2 2 1
MAX HEALTHCARE 3 3 1 1 2 1
REAL EARNINGS MANAGEMENT
COMPANY
ABNORMAL
CFO
ABNORMAL
DISC
EXPENSES
ABNORMAL PRODUCTION
COSTS AVG REM RANK
APOLLO HOSPITALS 0.1839818480.84463513 0.0000033247 0.342873434 3
FORTIS HEALTHCARE 0.0023698310.00286657 0.011964328 0.005733577 1
MAX HEALTHCARE 0.0190132890.07934338 0.004177389 0.03417802 2
EARNINGS QUALITY CHECK.zip

25. SUGGESTIONS & CONCLUSION
• From the ratio analysis, Apollo Hospitals is having fundamentally strong financial position than Max
healthcare and Fortis healthcare
• The company should focus on only their solvency portion which was denoted by their high debt ratios.
• If the investor wants to invest in healthcare sector, they can invest in apollo hospitals instead of
investing in Max and Fortis for long term benefit
• From the Earnings quality check, the company’s accounting information are reliable and relevant.
• The company should focus on only Real Earnings management.
07-11-2023 MONISHA S-2113059 25

26. LIMITATIONS AND SCOPE FOR FURTHER RESEARCH
• The study was limited to only Five years financial data and for 3 companies (2018-2022).
• The study is purely based on secondary data
• Ratio analysis is mainly based on past performances. So, its application for the future may lead to
erroneous decisions.
• Researchers can use this project to do further Forensic analysis.
07-11-2023 MONISHA S-2113059 26

27. THANK YOU
MONISHA S-2113059 07-11-2023 27