AnnualAnnual ReportReport

Blue Cross and Blue Blue Cross and Blue Shield of FloridaShield of Florida

Mandy IrwinMandy Irwin

ACG 2021.008ACG 2021.008

Executive SummaryExecutive SummaryBlue Cross and Blue Shield of Blue Cross and Blue Shield of Florida is a not-for-profit Florida is a not-for-profit mutual insurance company mutual insurance company that offers many different that offers many different kinds of health care options kinds of health care options from the general health care from the general health care option to dental insurance.option to dental insurance.

Annual ReportAnnual Report

IntroductionIntroduction

Michael Cascone, Jr. Chief executive Michael Cascone, Jr. Chief executive officerofficer

Located: Jacksonville, FloridaLocated: Jacksonville, Florida Ending of last fiscal year Dec. 31, 2002Ending of last fiscal year Dec. 31, 2002 Provides many different options of Provides many different options of

health insurance.health insurance. Many area of activity providing family Many area of activity providing family

health care. health care.

Audit ReportAudit Report

Companies auditors- BCBSF and Companies auditors- BCBSF and SubsidiariesSubsidiaries

That the company is a well That the company is a well established company with a lot of established company with a lot of potential benefits.potential benefits.

Stock Market InformationStock Market Information Recent price of company’s stock .85.Recent price of company’s stock .85. In a twelve month trading range the In a twelve month trading range the

stocks of BCBSF is only bound to stocks of BCBSF is only bound to improve with there stocks improving improve with there stocks improving that is why I would put a hold on that is why I would put a hold on buying or selling.buying or selling.

Dividends per share 125%Dividends per share 125% January 1, 2002- December 31, 2002January 1, 2002- December 31, 2002 I don’t feel as if the company would be I don’t feel as if the company would be

a good investment at this time. Holda good investment at this time. Hold

Industry Situation and Industry Situation and Company PlansCompany Plans

The company Blue Cross and The company Blue Cross and Blue Shield has a seen a small Blue Shield has a seen a small gain for the year of 2002. gain for the year of 2002. Which the company hopes to Which the company hopes to over come, and plans to over come, and plans to better there profits with the better there profits with the new assets of Goodwill and new assets of Goodwill and Intangible Assets.Intangible Assets.

Letter to boardLetter to board

Balance SheetBalance Sheet

Income StatementIncome Statement

Most likely a Most likely a multi-step multi-step formatformat

There has been There has been a slight increase a slight increase but not a lot of but not a lot of change, in change, in some areas but some areas but there is a gain.there is a gain.

GrossProfit

Income Fromoperations

Net Income last 2years

5,36220x2

5,663 20x2 193 20x2

5,11020x1

5,373 20x1 92 20x1

Balance SheetBalance Sheet It is entrusting to It is entrusting to

see that the total see that the total assets and total SHE assets and total SHE is the same.The is the same.The account that account that changed the most changed the most was the total assets was the total assets and total SHE. It and total SHE. It might have been might have been because a purchase because a purchase was made, Goodwillwas made, Goodwill

Assets = Liabilities + SHE

3,43920x2

2,266 20x2

3,43920x2

2,99120x1

1,99620x1

2,99120x1

Statement of Cash FlowStatement of Cash Flow

The operations are more than the net income The operations are more than the net income for the past two years.for the past two years.

The company is growing threw buying The company is growing threw buying Goodwill and other intangible goods. Goodwill and other intangible goods.

The company’s primary source of finance is The company’s primary source of finance is The surplus notes of $124 and interest paid The surplus notes of $124 and interest paid was $124 million, and interest paid was $12 was $124 million, and interest paid was $12 million to the surplus note.million to the surplus note.

Cash has increased over the past two years.Cash has increased over the past two years.

Accounting PoliciesAccounting Policies The significant accounting policies are: The significant accounting policies are:

revenue consists of the companies group revenue consists of the companies group contracts that are billed in advance, the contracts that are billed in advance, the company’s cash is its assets are Goodwill company’s cash is its assets are Goodwill which is $77 million and other property, which is $77 million and other property, equipment, and computer software. The equipment, and computer software. The company has $69 million in short term company has $69 million in short term borrowing loansborrowing loans

It states that the decrease is due to the It states that the decrease is due to the additional to a settlement of 1991 through additional to a settlement of 1991 through 1995.1995.

Notes on Financial StatementNotes on Financial Statement

Financial Analysis Liquidity Financial Analysis Liquidity RatioRatio

Working CapitalWorking Capital Current RatioCurrent Ratio Receivable Receivable

TurnoverTurnover Average days sales Average days sales

uncollecteduncollected Inventory turnoverInventory turnover Average days’ Average days’

inventory on handinventory on hand

$1173$1173 1.521.52 3.9 times3.9 times 93.6 days93.6 days

1.1 times1.1 times 332days332days

Financial Analysis Financial Analysis Profitability RatioProfitability Ratio

Profit marginProfit margin Asset TurnoverAsset Turnover Return on assetsReturn on assets Return on equityReturn on equity

.03%.03% 1 times1 times 1.8%1.8% 6%6%

Financial Analysis Financial Analysis Solvency RatioSolvency Ratio

Debt to equity Debt to equity 5.9%5.9%

Financial Analysis Market Financial Analysis Market Strength RatioStrength Ratio

Price/earnings per Price/earnings per shareshare

Dividend yieldDividend yield

9.3%9.3%

75 times75 times