A project on financial analysis of davita care

1
DECLARATION
I, Rohit Kumar Sahu, an MBA student of Mysore University, do hereby declare that
this report on “A Project Report on Financial Analysis of DaVita Care”, under
guidance of Prof. Basavarajappa P., Department of Management Studies, in
partial fulfillment of the requirement for the award of the degree of “Master of
Business Administration” is a bonafide study I have done in the organization. I also
declare that this report has not been previously formed for the award of any Degree,
Diploma, Associate ship, Fellowship or any other similar title of this or any other
university or institution.
Rohit Kumar Sahu

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COMPANY CERTIFICATRE
This is certifying that Rohit Kumar Sahu, Reg. No. – 14MB5968a student of “St.
Hopkins Post Graduate College of Management” undertook a project “A Project
on Financial Analysis of DaVita Care” at DaVita Care India Pvt. Ltd at Bangalore.
He has successfully completed that the project under the guidance of Mr. Anantha
Prabhu, Director of Finance Department. He is sincere and hardworking student
with pleasant manners.
.
I wish to him all success in his future endeavors.
Mr. AnanthaPrabhu

3
ACKNOWLEDGEMENT
I extend my special gratitude to our beloved Dean & Director Mr.Yunus Ahmed and
Co-coordinator Prof. Basavarajappa P. for inspiring me to take up this project.
I wish to acknowledge my sincere gratitude and indebtedness to all faculty of St
Hopkins Post Graduate College of Management, Bangalore for their valuable
guidance and constructive suggestions in the preparation of project report and alsoI
extend my gratitude to DaVita Care (India) Pvt. Ltd and the Director of Finance
Department,Mr.AnanthaPrabhu, and all my colleagues, friends for their
encouragement, support, guidance and assistance for undergoing industrial training
and for preparing the project report.

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Table of Chart & Graph:
A. Balance Sheet
1. Asset Growth ……………………………………………………………. 29
2. Asset Structure …………………………………………………………… 30
3. Liabilities and Equity Growth ……………………………………………. 31
4. Financial Structure Analysis ………………………………………………32
B. Income Statement
1. Income Statement Growth………………………………………………. 33
2. Gross Income ……………………………………………………………. 34
C. Cash Flow Statement ……………………………………………………….. 35
D. Financial Statement Ratios
1. Liquidity Ratios …………………………………………………………. 36
2. Profitability Ratios ……………………………………………………… 36
E. Other Important Values
1. Stock Price Performance …………………………………………………41
2. Stock Information ………………………………………………………... 42
3. DaVita vs. Fresenius ……………………………………………………... 44

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Table of Contents:
I. Introduction ……………………………………………………………05-12
II. Purpose and Scope
A. Objective of the Research ……………………………………… 13-14
B. Data Sources …………………………………………………… 13-14
C. Research Methodology ………………………………………… 14-15
III. Organization Information
A. About DaVita Care………………………………………… 16-19.
B. Services of DaVita Care…………………………………… 20-27
IV. Analysis of Financial Statements
A. Balance Sheet …………………………………………………… 28-32
B. Income Statement ………………………………………………. 33-34
C. Cash Flow Statement …………………………………………… 35-37
D. Financial Statement Ratios …………………..………………… 38-64
E. Other important values ………………………………………… 64-75
V. Results
A. Major and Minor Finding ……………………………………… 76-77
B. Conclusions …………………………………………………… 78-78
VI. Works Cited …………………………………………………………… 79-80
VII. Appendices …………………………………………………………… 80-81

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What is Dialysis?
Understanding Dialysis
When kidneys do not work as expected, the functions they are supposed to be
performing are impaired. The most important function of the kidneys is to
remove wastes from the body. When the kidneys do not work as well as they
should, the wastes in the body are not removed effectively.
This buildup of wastes in the body is harmful for the body.
Dialysis is a process by which this waste is removed from the body
Hemodialysis
In hemodialysis, blood flows, through a special filter (‘dialyzer’ or ‘artificial
kidney’) that removes wastes and extra fluids. The clean blood is then returned
to your body. Removing the harmful wastes and extra salt and fluids helps
control your blood pressure and keep the proper balance of chemicals like
potassium and sodium in your body.
One of the biggest adjustments you must make when you start hemodialysis
treatments is following a strict schedule. Most patients go to a dialysis center—
three times a week for 4 hours each visit. For example, you may be on a
Monday-Wednesday-Friday schedule or a Tuesday-Thursday-Saturday
schedule. You may be asked to choose a morning, afternoon, or evening shift,
depending on availability and capacity at the dialysis unit. Your dialysis center
will explain your options for scheduling regular treatments.
Researchers are exploring whether shorter daily sessions, or longer sessions
performed overnight while the patient sleeps, are more effective in removing
wastes. Newer dialysis machines make these alternatives more practical with
home dialysis.

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Some countries allow people to perform their hemodialysis treatments at home.
A family member or friend who will be your helper must also take the training,
which usually takes at least 4-6 weeks. Home dialysis gives you more flexibility
in your dialysis schedule. With home hemodialysis, the time for each session
and the number of sessions per week may vary, but you must maintain a regular
schedule by giving yourself dialysis treatments as often as you would receive
them in a dialysis unit.
Adjusting to Changes
Even in the best situations, adjusting to the effects of kidney disease and the
time you spend on dialysis can be difficult. Aside from the “lost time,” you may
have less energy. You may need to make changes in your work or home life,
giving up some activities and responsibilities. Now that you have kidney
disease; keeping the same schedule you kept when your kidneys were working
fine can be very difficult. Accepting this new reality can be very hard on you
and your family.
Many patients feel depressed when starting dialysis, or even after several
months of treatment. If you feel depressed, you should talk with your doctor
because this is a common problem that can often be treated effectively.

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Getting Your Vascular Access Ready
Arteriovenous fistula.
One important step before starting hemodialysis is preparing a vascular
access, a site on your body from which your blood is removed and returned. A
vascular access should be prepared weeks or months before you start dialysis. It
will allow easier and more efficient removal and replacement of your blood
with fewer complications.

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Equipment and Procedures
When you first visit a hemodialysis center, it may seem like a complicated mix
of machines and people. But once you learn how the procedure works and
become familiar with the equipment, you’ll be more comfortable.
Dialysis Machine
The dialysis machine is about the size of a dishwasher. This machine has three
main jobs:
pump blood and watch flow for safetyclean wastes from bloodwatch your blood
pressure and the rate of fluid removal from your body
Dialyzer
Structure of a typical hollow fiber dialyzer- The dialyzer is a large canister
containing thousands of small fibers through which your blood is passed.
Dialysis solution, the cleansing fluid, is pumped around these fibers. The fibers
allow wastes and extra fluids to pass from your blood into the solution, which
carries them away.

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The dialyzer is sometimes called an artificial kidney.
Reuse- Your dialysis center may use the same dialyzer more than once for your
treatments. Reuse is considered safe as long as the dialyzer is cleaned before
each use. The dialyzer is tested each time to make sure it’s still working, and it
should never be used for anyone but you. Before each session, you should be
sure that the dialyzer is labeled with your name and check to see that it has
been cleaned, disinfected, and tested.
Dialysis Solution
Dialysis solution, also known as dialysate, is the fluid in the dialyzer that helps
remove wastes and extra fluid from your blood. It contains chemicals that make
it act like a sponge. Your doctor will give you a specific dialysis solution for
your treatments. This formula can be adjusted based on how well you handle the
treatments and on your blood tests.
Needles
Many people find the needle sticks to be one of the hardest parts of
hemodialysis treatments. Most people, however, report getting used to them
after a few sessions. If you find the needle insertion painful, an anesthetic cream
or spray can be applied to the skin. The cream or spray will numb your skin
briefly so you won’t feel the needle.
Most dialysis centers use two needles— one to carry blood to the dialyzer and
one to return the cleaned blood to your body. Needles for high-flux or high-
efficiency dialysis need to be a little larger than those used with regular
dialyzers.

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Illustration of an arm with arterial and venous needles
Tests to See How Well Your Dialysis Is Working
About once a month, your dialysis care team will test your blood by using one
of two formulas—URR or Kt/V—to see whether your treatments are removing
enough wastes. Both tests look at one specific waste product, called blood urea
nitrogen (BUN), as an indicator for the overall level of waste products in your
system.
Peritoneal Dialysis
Peritoneal dialysis has been aa method of dialysis since the 1980s, and is now a
routine alternative to hemodialysis for kidney failure patients.
Though there are many different types of PD, there are two main versions. the
first is continuous ambulatory peritoneal dialysis (CAPD), which doesn’t
require a machine and can be done manually. The second version, automated
peritoneal dialysis (APD), requires the use of a machine called a cycler to fill
and drain the abdomen, usually during the night while the patient sleeps.
A special catheter (tube) is inserted surgically in the stomach wall, often near
the umbilicus. This is a minor procedure. And ideally after a 10 – 14 day
healing period, PD is usually initiated (Although may be initiated earlier if
necessary). With CAPD, the fluid is left in the abdomen for 4 and 6 hours
(called the dwell time).

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Waste products are transferred through the peritoneal membrane into the
dialysis fluid. After the dwell time, the fluid is allowed to drain to a second bag
which has been placed below the patient, usually on the floor, and thus the
waste products are removed from the body. This takes around 30-40 minutes to
complete. This process is required to be performed usually 3 to 4 times a day .
In an APD, the patient connects to the machine at bedtime, and the process
occurs automatically overnight, with the solution being refreshed several times.
The main advantage of CAPD is that it can be carried out by the kidney patient
at home – no scheduled hospital or clinic visits are required. It can then be
carried out at times convenient to the patient. The patient does all the work by
themselves. It makes it easier to travel, as only bags of fresh fluid need be
carried around, rather than arranging to use a local clinic when on holiday.
But there are a few disadvantages as well. The kidney patient must maintain a
high standard of cleanliness while carrying out the procedure to avoid the risk of
infection. Patient needs to undergo initial training on the procedures to be used.

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A. Objective of the Research
The objective of this paper is to thoroughly analyze DaVita’s financial history
and status for the last five years (2010 – 2014). Also, DaVita’s future growth and
financial stability for the next two years will be examined (forecast for 2015-2016).
Other important topics will be discussed which include: the growth in net income, the
growth in sales revenue, the growth in operating income, the growth in assets, and the
growth in various and significant costs. Moreover, earnings per share, movements of
the stock prices in the past, and the capital structure of DaVita Care will be examined.
To support the analysis, different relevant ratios will be calculated for DaVita Care in
order to estimate the company’s current status, and also to compare DaVita Care to its
major competitors – Fresenius Medical Care and Nxstage Medical.
B. Data Sources
The main sources of financial information are the DaVita’s Balance Sheet,
the Income Statement, and the Cash Flow Statement. DaVita’s last 1-K Report
(2014) is used, which was directly pulled from the company website
(www.davita.com). Also, additional information is used from various reports and
analysis provided by Thomson One – Business School Edition, and other websites
like: Yahoo! Finance, Reuters, Morningstar, Google Finance, Smart Money, and
Zacks.
Based on the sources cited above, the following tables were extracted or created:
05/05/15 2014 Annual Report

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C. Research Methodology
The financial analysis of DaVita Care is based on evaluating company and
industry data from various sources.
A trend analysis was performed using data for the last five years, and presented
in Excel charts and tables.
A vertical analysis was performed, which also involved an industry
comparison. Common-size statements were created, where each item was shown in
percentage terms from a common base. In the case of a firm’s assets, I treated the
total assets as equaling 100. All other assets were then calculated as a percent of total
assets. In this way, the structure of the firm’s assets can be easily interpreted and
compared with main competitors. For liabilities, total liabilities and equity were
indexed to equal to 100. For the income statement, total revenue was indexed to
equal 100, and all other figures were calculated as a percent of these figures.
Finally, I computed various ratios for Daita Care, and compared them to industry
norms. Numerous graphs were created using MS Excel to support the analysis.

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A. About DaVita
DaVita Health Care Partner, Inc. is one of the largest kidney care companies in the
United States, with corporate headquarters in Denvar, Colorado.
One of the largest providers of dedicated renal care in the world - with
operations in USA, India, China, Singapore, Germany, Malaysia, etc. The largest chain
of standalone dialysis and kidney care centers in India.A team of 46,000 doctors,
dialysis therapists, nurses and staff around the world and 300 in India. A name that
gives life to 1,74,000patients on dialysis at 2,203 centers worldwide.
DaVita is India's first-of-its-kind renal disease management center, offering
affordable and holistic care for Acute, Chronic, and End Stage Renal Disease (ESRD).
Their mission is more than just a statement - They aim to improve the quality and
longevity of life for all their patients.
DaVita- which is Italian for “giving life” – has more than 50,000 teammates
(employees) around the nation working to provide superior patient care and exemplify
the company’s Core Values.

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DaVita Kidney Care, a division of DaVita HealthCare Partners Inc. and a
Fortune 500® company, has improved outcomes for renal care over the last decade or
more. Ask any of the hundreds of Indians across Bangalore, Chennai, Pondicherry,
Hyderabad, New Delhi and Pune. Their expertise enables technology-driven care that
is holistic i.e. a team of full-time nephrologists working with dieticians and
psychologists to achieve best clinical outcomes.
At DaVita, They see their selves as a community over a company. And like every
community, they care - for each other, for their patients, for country and for the world.
DaVita is the undisputed leader in kidney care in India due to our benefits of:
Full - time nephrologists. Dialysis technicians and nurses trained by the best in
the world. All - inclusive, transparent pricing. India’s first networked dialysis highest
spec RO ultra-filtration with remote monitoring. Bedside entertainment with individual
LCD screens and WIFI. Pick &drop facility.
Vision
To provide the highest quality renal disease management through a
pan - India network of superbly staffed and equipped DaVita Care centers.
Mission
To be the Provider, Partner and Employer of Choice.
Values
Their values are more than just a statement. They are the rules by which our
organization serves the community and the world.

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The Dialysis Academy
There are over 3, 50,000 patients in India who require some form of renal replacement
therapy every year. While the dialysis industry in India has seen rapid growth, the quality of
education and training is still lagging far behind. At the Dialysis Academy, you will get the real-
world exposure and the expertise required for a long-term career in dialysis. The purpose of
DaVita Dialysis Academy is to provide both fresher’s and experienced candidates with industry-
ready skills and knowledge. Students will master the end-to-end process of dialysis by hands on
theoretical classes and workshops by the best trainers from India and across the world.
This program has been endorsed by the DaVita Inc. – the premier company for
dialysis in the United States. It is an intensive course, which includes didactic lectures from
renowned dialysis experts, interactive problem solving sessions, hands-on workshops and
industry level expert training.

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C. Services of DaVita Care
Dialysis
 Hemodialysis
 Home Hemodialysis
 Peritoneal dialysis
 ICU & Emergency
dialysis
 Online HDF
 SLED / SCUF
Nephrology
 Renal care clinic-
OPD/Consultation
Services
 Acute renal failure
 Advanced Care -
Renal Transplant
Kidney Transplant
 Kidney Transplant
Services
 Advantages of
Choosing DaVita
 Life after Renal
Transplant
Urology
 UTI Disorders
 Kidney Stones
 Laparoscopic Surgeries
 Andrology
Allied Services
 Psychology
 Diet & Nutrition
 General Services
 Packaged Services
Other Specialties
 Vascular Access - AV
Fistula Surgeries
 Pediatric Nephrology
 Endocrinology
 Radiology (USG, Doppler)

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Dialysis
Hemodialysis
Blood is pumped outside the body to an artificial kidney machine. The machine
cleanses the blood and returns it to the body. Only a small amount of blood is out of the
body at any time.
A “fistula” (the surgical linking of an artery to a vein) provides access to blood vessels.
So does a “graft” (tubing surgically placed under the skin, linking an artery to a vein).
Two needles are placed into the fistula or graft. The needles are then attached by plastic
tubing to a special filter. This filter is an artificial kidney called a dialyzer. One needle
withdraws blood for cleansing. The other needle returns filtered blood to the body.
A pump pushes blood through the dialyzer. Blood passes on one side of the filter.
Solution made by the dialysis machine passes on the other side. The solution draws
excess fluid and waste out of the blood. A filter is used with pores large enough to
allow waste to leave. Larger molecules like blood cells cannot pass through the filter.
The average person receives three treatments per week. Each treatment lasts three to
four hours.
We do maintenance hemodialysis, hemodialysis in ICU for acutely ill patients
(including SLED), mineral bone disease management, renal anemia management,
and hemodialysis for HCV/HBV + patients.

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Home Hemodialysis
DaVita's home hemodialysis (HHD) may be the right
treatment option for your lifestyle. See how DaVita can get you started; offer the HHD
support team you’ll need and help you live well on this treatment option.
Renal care clinic- OPD/Consultation Services
Glomerular diseases / Nephrotic syndrome (symptoms of which may include leg
swelling, blood in urine, protein or blood cells in urine analysis, high blood pressure)
Chronic kidney disease (Screening of people at risk i.e. diabetics, hypertensive, family
history of CKD, Elevated BUN/ creatinine, abnormalities on sonography), Predialysis
CKD management, prevention of progression, hereditary kidney diseases. Renal stone
disease Urinary tract infections Hypertension in young - may be due to renal or renal
vascular disease Electrolyte disorders renal transplant Kidney diseases in children
(pediatric nephrology)

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Acute Kidney Injury
Acute Kidney Injury (formerly called acute renal failure) means that your kidneys have
suddenly stopped working. Your kidneys remove waste products and help balance
water, salt and other minerals (electrolytes) in your blood. When your kidneys stop
working, waste products, fluids, and electrolytes build up in your body. This can cause
problems that can be deadly.
Acute kidney injury has three main causes:
A sudden, serious drop in blood flow to the kidneys - Heavy blood loss, an injury, or a
bad infection called sepsis can reduce blood flow to the kidneys. Not enough fluid in
the body (dehydration) also can harm the kidneys. Damage from some medicines,
poisons, or infections - Most people don't have any kidney problems from taking
medicines. But people who have serious, long-term health problems are more likely
than other people to have a kidney problem from medicines. Examples of medicines
that can sometimes harm the kidneys include: - Antibiotics, such as gentamicin and
streptomycin.
- Pain medicines, such as aspirin and ibuprofen.
- Some blood pressure medicines, such as ACE inhibitors.
- Dyes used in some X-ray tests. A sudden blockage that stops urine from flowing
out of the kidneys - Kidney stones, a tumor, an injury, or an enlarged prostate gland can
cause a blockage.
Advanced Care – Renal Transplant.
It is estimated that every year over 100,000 people are diagnosed to have kidney
disease in India. Due to various reasons, including the non-availability of organs, only
about 2,500 kidney transplants are done.
During a transplant, a healthy donated kidney is placed deep under your skin near your
hipbone. In some cases, the non-working kidneys may be removed to control infection
or high blood pressure.

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Kidney Transplant Services
DaVita believes in giving you the choice for Renal Replacement Therapies - be it dialysis
or transplant (both live related donor and cadaver). We now offer transplant services at all
our major centers.
Advantages of Choosing DaVita
Some of India's top teams of transplant surgeons & nephrologists
Tertiary care hospital support - with NABH certification

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Urology
DaVita has set a new benchmark in the field of Nephrology and has changed lives of many
people for good. And now we are changing the field of Urology.
Urology is the surgical specialty that focuses on the diseases of urinary tract system of both
males and females, and on the reproductive system of males. The organs dealt with are the
kidneys, adrenal glands, ureters, urinary bladder, urethra, and the male reproductive organs.
At DaVita, we believe in a holistic care model where we care for a patient as a whole. Along
with treating the disease we also take care of his co-morbid situations, his physical, emotional
and financial needs. With our patient centric approach, we build rapport not only with the
patient but also with his family members. With an esteemed team of qualified urologists and
technicians on board, you can expect our unparalleled service and highest quality outcomes
for problems related to the field.
Some common ailments of the urinary tract:
Congenital Urologic Conditions Kidney Stones Urethral strictures Trauma to the male
reproductive system Common problems of the male reproductive organs Male Infertility Benign
Prostatic Hyperplasia Cancer of the Adrenals, Kidney, Ureter, prostate or urinary bladder Stress
IncontinenceHydronephrosis and Ureter Disorders Neurogenic Bladder and Overactive Bladder
Interstitial Cystitis Urothelial Tumors of the Renal Pelvis and Ureters Erectile Dysfunction,
Premature Ejaculation and Sexual Disorders

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Psychology
What is Psychotherapy?
Psychotherapy is the practice of spending time with a professionally trained
psychotherapist to identify and help you overcome mental and emotional problems of
personal or interpersonal nature. The psychotherapist uses techniques that are rooted in
effective communication and insight building, to facilitate personal growth and freedom
from disturbing thoughts and emotions that make you feel stuck or hold you back in
your life.
While coping with a chronic disease is hard on the body, it is a lot harder on the mind.
Our in-house psychologists assist patients and help them cope with kidney disease.
What is the difference between a psychiatrist, psychologist and psychotherapist?
A psychiatrist is a medical doctor with specialized training in the field of mental /
psychological disorders. They can prescribe medicines to treat psychological disorders.
A psychologist is a person who has a masters or doctoral degree in psychology. There
are many different kinds of psychologists, but only Clinical or Counseling
Psychologists are qualified to offer therapy. Psychologists treat mental disorders using
psychological methods and cannot prescribe medicines.
Psychotherapists are psychologists or psychiatrists with additional training in a
particular form of therapy for e.g. Cognitive, behavioral or psychodynamic therapy.

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Telenephrology
What is Tele-Nephrology?
At DaVita, we believe in delivering superlative care to patientsto even the most remote areas
in India by harnessing technology and innovation. As a result, we have introduced Tele-
Nephrology services in order to improve access and quality of care. Tele-Nephrology uses
two-way video, email, smart phones, wireless tools and other forms of telecommunications
technology.
How can Tele-Nephrology serve you?
Here are some examples of how Tele-Nephrology can serve you:
•Consultation Services – Our nephrologists, psychologists and dietitians can provide
consultation services for patients using live interactive video. This means that patients do not
have to travel long distances in order to meet and consult their doctors.
•Remote patient monitoring – Using our HMS software, our physicians and technicians are
able to remotely collect and view a patients’ vitals and treatment outcomes in real-time. Such
services can be used to supplement the need of visiting physicians.
•Obtaining kidney-related information – Using the internet, interactive video, and other
wireless devices, patients can interact and obtain a ton of specialized kidney-related
information from our physicians, psychologists and dietitians on board.

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IV. Analysis of Financial Statements

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0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
2014 2013 2012 2011 2010
Assets Growth
Cash and cash equivalents
Short-term investments
Accounts receivable
Inventories
Other receivables
Other current assets
Total current assets
Property and equipment, net
Equity investments
Long-term investments
Goodwill
Total Assets
The Company consists of two major divisions, Kidney Care and HealthCare Partners (HCP).
Kidney Cares comprised of our U.S. dialysis and related lab services, our ancillary services
and strategic initiatives, including our international operations, and our corporate support
costs. Our U.S. dialysis and related lab services business is our largest line of business, which
is a leading provider of kidney dialysis services in the U.S. for patients suffering from chronic
kidney failure, also known as ESRD. Our HCP division is a patient- and physician-focused
integrated health care delivery and management company with nearly three decades of
providing coordinated, outcomes-based medical care in a cost-effective manner.
DaVita’s fiscal year always ends in the end of December, therefore the financial statements of
a specific year represent the first three quarters (January – September) of the same year, and
the last quarter (October – December).
A. Balance Sheet
1. Asset Growth
(Dollars in thousands, except per share data)

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-80.00%
-60.00%
-40.00%
-20.00%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
2014 2013 2012 2011 2010
Assets Structure Analysis
Cash and cash equivalents
Accounts receivable
Inventories
Total current assets
Property and equipment, net
Goodwill
Total Assets
Total Assets: Since 2010 ($8,114,424), the amount of total assets to $ 17,942,715 in
2014 - 121.12% increase for the period. Respectively, during the years, the growth in
total assets is:
Year 2014 2013 2012 2011 2010
Growth in Total Assets 4.94% 6.74% 80.14% 9.58% 7.36%
Total Current Assets: The amount of total current assets successively increased through
the period except -1.01%: in 2011.
Year 2014 2013 2012 2011 2010
Total Current Assets 11.65% 20.62% 26.17% -13.01% 13.91%
2. Asset Structure
The following chart is on DaVita’s Asset Structure Common Size report
In 2014 almost 25% of the Total Assets were Current Assets with only 0.76% in Inventories
and 73.76% in Property, Plant & Equipment. As of 2014, DaVita had $ 1,302,640 in cash, cash
equivalents, and short-term investments.

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0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
2014 2013 2012 2011 2010 2009
Liabilities and Equity Growth
Accounts payable
Total current liabilities
Long-term debt
Total liabilities
Retained earnings
Total DaVita Inc. shareholders’
equity
The Company's short-term investment portfolio is primarily invested in highly rated, liquid
investments. As of 2011 and 2010, $17,399 and $23,033, respectively, of the Davita’s cash,
cash equivalents, and short-term investments were held by foreign subsidiaries and are
generally based in U.S. dollar-denominated holdings. Apple’s existing balances of cash, cash
equivalents, and short-term investments will be sufficient to satisfy its working capital needs,
capital expenditures, outstanding commitments, and other liquidity requirements associated
with its existing operations in the near future.
3. Liabilities and Equity Growth
Total Liabilities: As shown at the chart above, the amount of Total Liabilities
increased 86.93% in 2012 whereas it is decreased 0.37% in 2014.
Year 2014 2013 2012 2011 2010
Total liabilities -0.37% 2.49% 86.93% 8.14% 13.15%
Retained Earnings: For the analyzed period, Davita’s Retained Earnings grew from
$2,717,817 in 2010 to $4,087,103in 2014 (56.57% increase), due to overall growth in
profit. For the last fiscal year of 2014, Davita’s Retained Earnings were 23.88% of the
Company’s Total Liabilities and Equity.
Year 2014 2013 2012 2011 2010
Retained earnings 21.50% -9.86% 16.77% 17.59% 17.55%

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-40.00%
-20.00%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
2014 2013 2012 2011 2010
Financial Structure Analysis
Accounts payable
Total current liabilities
Long-term debt
Total liabilities
Total DaVita Inc. shareholders’
equity
4. Financial Structure Analysis
As shown at the chart above, current liabilities decrease by 11.71% (2,088,652) and
15.17% (924,345) in 2010 and 2014, respectively. Total DaVita Inc. shareholders’
equity is increased by 38.26% from 1,978,422 in 2010 to 5,170,513 in 2014.

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0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
2014 2013 2012 2011 2010
Income Statement Growth
Total Net Revenues
Total operating expenses and
charges
Gross Profit
B. Income Statement
1. Income Statement Growth:
Revenues: During the analyzed period the amount of Total Revenues increased
successively, and by the end of 2014 it doubled since 2010. That shows a strong
positive trend.
Year 2014 2013 2012 2011 2010
Total Net Revenues 8.76% 43.70% 17.24% 8.45% 5.53%
Total Operating Expenses: The amount of Total Operating Expenses also
successively increased through the years, which is directly related to the
increase in total sales.
Year 2014 2013 2012 2011 2010
Total operating expenses
and charges 7.50% 48.26% 17.74% 7.53% 5.43%

35
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
2014 2013 2012 2011 2010
Net patient service revenues
Income tax expense
Net income
Gross Income: The Gross Income also increased simultaneously to the Net
Sales and represents a positive trend. In 2014, DaVita Care outperformed its
rivals with a GrossIncome growth of 17.10%.
Net Patient Service Revenues: Following table show the Net Patient Service
Revenues change from 4,242,147 in 2010 to 8,501,454 in 2014.
Year 2014 2013 2012 2011 2010
Net patient service
revenues 6.09% 12.60% 52.04% 4.78% 5.30%
Net Income:During the analyzed period the amount of Net Income increased
successively, and by the end of 2014 it doubled since 2010 (From 479,759 to
863,330). That shows a strong positive trend
Year 2014 2013 2012 2011 2010
Net income 14.02% 18.08% 11.83% 18.42% 0.93%

36
-6,000,000
-5,000,000
-4,000,000
-3,000,000
-2,000,000
-1,000,000
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
2014 2013 2012 2011 2010
Net Operating Activities
Net Investing Activities
Net Financing Activities
Net Increase/Decrease in Cash
C. Cash Flow Statement
Net Cash Flow from Operating Activities: The net cash flow from operating
activities has been on the rise by 57.54% from 839,683 in 2010 to 1,459,407 in
2014. .
Year 2014 2013 2012 2011 2010
Net cash provided by operating
activities 17.70% 61.09% -6.71% 40.53% 25.94%
Net Cash Flow from Investing Activities: Trend analysis shows that the overall
growth in Net Cash from Investing Activities was 34.17% for the last 5 years.
Common size analysis shows the percentages of net investing activities:
Net Cash Flow from Financing Activities: This figure continuously rose from
$82,392 in 2010 to $164,979 in 2014.
Net Change in Cash: Every year except 2011 (-$466,365), Davita generated a
positive Net Change in Cash. In 2013 the change of $412,501 was the highest in
the last five years.

37
0.00
0.50
1.00
1.50
2.00
2.50
3.00
2014 2013 2012 2011 2010
Liquidity Ratios
Current Ratio
Quick Ratio
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
2014 2013 2012 2011 2010
Profitability Ratios
Gross Profit Ratio
Return on Assets
Return on Equity
D. Financial Statement Ratios
1. Liquidity Ratios:
Current Ratio and Quick Ratio: Trend analysis reveals that both ratios were
relatively steady during the first year of the analyzed period, and then both
declined a littleduring 2011 and 2014. Common size analysis for the last year
shows that both ratios.
2. Profitability Ratios:
Gross Profit Ration: This ratio is very steady during the analyzed period with a
slightly positive trend to rise. This is a strong indicator that Davita is a well
profitable company, and it outperforms its rivals.
Return on Assets (ROA): At first, this ratio raised during 2010, and then began
to decline in 2011 and 2014..

38
Return on Equity (ROE): The same trend is true for this ratio. In 2010 and 2011
Davita’s ROE reached almost 25% - the highest level in the period
E. Other Important Values
Financial Data
The following financial and operating data should be read in conjunction with
“Management’s Discussion
and Analysis of Financial Condition and Results of Operations” and our consolidated
financial statements filed as part of this report. The following table presents selected
consolidated financial and operating data for the periods indicated. Effective January 1,
2012 we were required to present our provision for uncollectible accounts related to
patient service revenues as a reduction from our patient service revenues, which
changed the classification of our provision for uncollectible accounts related to patient
service revenues. These selected consolidated financial results have been recast for all
prior periods presented to reflect the retrospective application of these new presentation
and disclosure requirements for patient service revenues.
On November 1, 2012, we completed our acquisition of HCP whereby HCP became a
wholly-owned
subsidiary of the Company. The total consideration paid for all of the outstanding
common units of HCP was approximately $4.71 billion, which consisted of $3.65
billion in cash, net of cash acquired, and 18,760,624 shares of our common stock
valued at approximately $1.06 billion. During 2013, we paid an additional $5.3 million
in cash for post-closing working capital adjustments. In addition, we paid
approximately $137 million to the common unit holders of HCP as a result of HCP
achieving certain financial performance targets in 2012.
In 2013, we also reached an agreement with the representative of the former owners
and option holders of HCP to settle certain post-closing adjustments, including the 2013
contingent earn-out obligation for approximately $68.8 million. The operating results of
HCP are included in our consolidated results beginning November 1, 2012.

40
(1). Operating expenses and charges in 2014 include an additional accrual of $17,000
for the loss contingency reserve related to the settlement of the 2010 and 2011 U.S.
Attorney Physician Relationship Investigations. Operating expenses and charges in
2013 include an accrual of a loss contingency reserve of $397,000, a contingent earn-
out obligation gain adjustment of $56,977 that increased operating income and an
adjustment to reduce a tax asset associated with the HCP acquisition escrow provisions
of $7,721. In addition, 2012 included $85,837 for a legal settlement and related
expenses, and $30,753 of transaction expenses associated with the acquisition of HCP.
(2). Income from operations of discontinued operations, net of tax includes the
operations of Home Choice Partners Inc.(HomeChoice) which was divested on
February 1, 2013 and include the operations of Home Choice for all prior periods
presented as well. The income from operations of discontinued operations in 2011 also
includes $24,000 of non-cash goodwill impairment charge related to this business.
During 2011, we divested a total of 28 outpatient dialysis centers in conjunction with a
consent order issued by the Federal Trade Commission on September 30, 2011 in order
for us to complete the acquisition of DSI. We completed the sale of two additional
centers that were previously pending state regulatory approval in conjunction with the
acquisition of DSI on October 31, 2011. The operating results of the historical DaVita
HealthCare Partners Inc. divested centers are reflected as discontinued operations in our
consolidated financial statements for all prior periods before the centers were sold. In
addition, the operating results for the historical DSI divested centers arereflected as
discontinued operation in our consolidated financial statements from September 1, 2011
until the dates of sale.
(3). In the third quarter of 2013, the Board of Directors approved a two-for-one stock
split of our common stock in the form of a stock dividend payable on September 6,
2013 to stockholders of record on August 23, 2013. Our common stock began trading
on a post-split basis on September 9, 2013. All share and per share data for all prior
periods presented have been adjusted to reflect the effects of the stock split. Share
repurchases consisted of 7,589,372 shares of common stock for $323,348 in 2011 and
17,837,520 shares of common stock for $618,496 in 2010. Shares issued in connection
with stock awards were 2,179,766 in 2014, 1,928,137 in 2013, 2,375,571 in 2012,
2,520,518 in 2011 and 3,542,768 in 2010.

41
(4) The ratio of earnings to fixed charges was computed by dividing earnings by fixed
charges. Earnings for this purpose are defined as pretax income from continuing
operations adjusted by adding back fixed charges expensed during the period. Fixed
charges include debt expense (interest expense and the write-off and amortization of
deferred financing costs), the estimated interest component of rental expense on
operating leases, and capitalized interest.Stock is traded on the New York Stock
Exchange under the symbol DVA. The following table sets forth, for the periods
indicated, the high and low closing prices for our common stock as reported by the
New York Stock Exchange. The closing prices represent the high and low on a post-
split basis, which took effect in the third quarter of 2013. All prior closing prices have
been adjusted to reflect the effects of the stock split.
The closing price of our common stock on January 30, 2015 was $75.06 per share.
According to Computershare, our registrar and transfer agent, as of January 30, 2015,
there were 11,031 holders of record of our common stock. We have not declared or
paid cash dividends to holders of our common stock since 1994. We have no current
plans to pay cash dividends and we are restricted from paying dividends under the
terms of our Senior Secured Credit Facilities and the indentures governing our senior
notes. Also, see the heading “Liquidity and capital resources” under “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” and the
notes to our consolidated financial statements.

42
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
31/12/2010 31/12/2011 31/12/2012 31/12/2013 31/12/2014
Stock Performance 2010-2014
DaVita HealthCare Partners Inc
S&P 500 Stock Index
S&P 500 Health Care Index
Stock Price Performance
The following graph shows a comparison of our cumulative total returns, the Standard
& Poor’s 500 Stock Index and the S&P 500 Health Care Index. The graph assumes that
the value of an investment in our common stock and in each such index was $100.00 on
December 31, 2009 and that all dividends have been reinvested.
The comparison in the graph below is based solely on historical data and is not intended
to forecast the
possible future performance of our common stock.
COMPARISON OF FIVE-YEAR CUMULATIVE TOTAL RETURNS
AMONGDAVITA HEALTHCARE PARTNERS INC., S&P 500 STOCK INDEX,
S&P 500 HEALTH CARE INDEX

43
Stock Information (Updated as of November, 20 2015)

44
Summary (Financial Analysis - 2014)
Recent Price ($) 73.24
Trade Date 12-Nov-15
Share Related
Market Cap (Total, All Common Classes)
(Mil) 15453.64
Shares Outstanding (Total, All Classes) (Mil) 211
Shares Outstanding, Average (FY) (Mil) 216.93
Income Statement (Mil)
Total Revenue 12795.11
Total Operating Expense 10979.97
Net Income Before Taxes 1309.67
Net Income 723.11
Fiscal Year Ending - 12/31/14
Valuation
P/E (FY) 21.97
Price to Revenue (FY) 1.21
Price to Book (FY) 3.05
Price to Cash Flow (FY) 10.59
Financial Strength
Current Ratio (FY) 1.86
Quick Ratio (FY) 1.79
Total Debt to Equity (FY) (%) 164.46
Profitability
Gross Margin (FY) (%) 28.73
Net Profit Margin (FY) (%) 6.75
Management Effectiveness
Return on Equity (FY) (%) 15.06
Return on Investment (FY) (%) 6.04
Return on Assets (FY) (%) 4.93

45
DaVita vs. Fresenius
Fresenius and DaVita combined represent about 60% of the more than 5,500 facilities
that were rated, and there were stark differences between how the companies
performed, according to a Modern Healthcare analysis of the rating posted to the CMS’
Dialysis Facility Compare website.
DaVita had 324 facilities that earned a five-star rating, making up 57% of the ones in
that category. Forty DaVita facilities, out of 1,785 rated, received the lowest score.
The predictable revenue stream is going keep kicking off significant cash for DaVita
shareholders. DaVita’s cash flow jumped to nearly $1.8 billion over the past 12 months,
which is roughly five times 2009 levels. Meanwhile, cash flow at Fresenius has grown
less substantially.

47
A. Major and Minor Finding
Based on the findings in the trend and common size analysis, DaVita’s
overall performance is above average.
Analysis of company’s Balance Sheet showed that DaVita’s growth in
Total Assets, Common Equity, and Retained Earnings was above industry
average.
Analysis of company’s Income Statement showed that DaVita’s growth in
Net Sales and Gross Income are continuously increased during 2010 -2014.
Analysis of company’s Cash Flow Statement showed that DaVita’s Net Cash
Flow from Operating Activities was above the industry average, and that resulted in a
positive Net Change in Cash.
DaVitaprovided nearly 25.0 million dialysis treatments in 2014, a 5.8%
increase from 2013. 2014 non-acquired growth was 5.1% year-over-year.

48
B. Conclusions
Based on the performed analysis, DaVita Care is financially healthy and
strong. The company’s growth has been extraordinary during the past five years. Its
financial structure is outstanding. Net Revenues and Net Income are increasing each
year. Retained Earnings reached $4,087,103 in 2014, which is an indicator for the
financial power ofDaVita. Due to the fact that services are constantly increasing, and
backed by $965,241 (2014) in Cash and equivalents, the company can afford future
acquisitions.
During the years, DaVita has substantially improved in its key measures of
profitability. In terms of ROA, ROE, and profit margins, DaVita strengthened
financially and now has better ratios than past years.
Based on the facts presented above, it may be concluded that DaVita is
performing better than the industry average. This dramatic success in performance
is primarily due to the increase in patient services.

49
VI. Works Cited
DaVita’s Annual Report for 2010-2014
http://investors.davitahealthcarepartners.com/phoenix.zhtm
l?c=76556&p=irol-reports
Financial Summary-2014
http://investors.davitahealthcarepartners.com/phoenix.zhtml?c=76556&p=irol-
fundamentals
Stock Information
stockQuote
Stock Chart
stockChart
Historical Price Lookup
stockLookup
Google Finance
http://finance.google.com/finance?client=ob&q=NASDAQ:AAPL

50
Morningstar
http://quote.morningstar.com/Quote/Quote.aspx?pgid=hetopquote&ticker=AAL
Reuters –Thomson Reuters
http://stocks.us.reuters.com/stocks/overview.asp?symbol=AAPL.O
SmartMoney
http://www.smartmoney.com/eqsnaps/?story=snapshot&symbol=AAPL
ThomsonOne – Business School edition for Finance
http://tobsefin1.swlearning.com
Yahoo! Finance
http://finance.yahoo.com/q?s=AAPL
Zacks – Investment research
http://www.zacks.com/research/report.php?PHPSESSID=efb04eac5d6c68ecff2
57f8023f05a8f&t=AAPL

51
VI. Appendices:
Appendix 1: DaVita’s Annual Report for 2010-2014
Appendix 2: Financial Summary-2014
Appendix 3: Stock Information
Appendix 4: Stock Chart
Appendix 5: Comparative Historical growth analysis
Appendix 9: Comparative Balance sheet margins
Appendix 10: Comparative Income Statement

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