The income statement will give a wealth of information about a company’s earning status over a certain time period. This statement shows how a company is fairing financially. The income statement reports a company’s profits, losses, shares, net income, operating expenses as well as income taxes.
Cash flow statements fluctuate due to the inflow and out flow of cash. The cash flow explains how much or little cash has been generated through the company, the income statement is not capable of that. The cash flow statement is divided into investing activities, operating, and financing activities. These three steps analyze a company’s cash flow from net loss; it shows flow from purchases i.e. plant, property, and equipment. And lastly, it shows cash flow by selling stocks and bonds or paying back a loan so to speak. Novartis is a leading company that is focused on developing and successfully marketing products that potentially will prevent and/or cure diseases. The purpose of these products is to enhance the quality of one life. Novartis is made up of pharmaceuticals, generics, eye care products, consumer health products, and vaccines and diagnostic tools.
Novartis Financial Report
Income Statement 2010 2009
2010 Net Sales:
Pharmaceuticals- 30,558
Vaccines and Diagnositcs-2, 918
Consumer Health- 6,204
2010 Core Operating Income:
Pharmaceuticals- 9,909
Vaccines and Diagnostics- 1,066
Consumer Health- 1,253
2010 Net Sales: US 10,043
Vaccines and Diagnostics-1, 184
Consumer health-2, 006
Balance Sheet 2010 2009
Statement of Cash 2010 2009
Operating income increased 15% on expanding its business and improvements. Net sales increased by 14% by increased growth. 22% of the operating income has increased. Net income has increased 18% and the core income has increased by 17%.
References:
Novartis.com/downloads/newsroom/corporate-publications/Novartis-annual-reporat-2010-en.pdf
Healthcare Finance. An Introduction to Accounting and Financial Management. Gapenski. 4th ed. September 2011. Health Administration Press. AUPHA.
http://www.sec.gov/investor/pubs/begfinstmtguide.htm
