Hellenic Open University Conferences, International Conference on Business & Economics of the Hellenic Open University 2015

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Financial Analysis of the Greek Private Health Sector: The Case of Hygeia SA Before and After the Economic Crisis (2006 – 2013)
Georgios Loukopoulos, Theodoros Roupas

Building: Titania
Room: Platon
Date: 2015-02-06 05:00 PM – 07:00 PM
Last modified: 2015-01-27


The purpose of this study is to perform a comprehensive financial statement analysis for Hygeia, the largest Private Health Organization in Greece. In this regard, we employ a variety of theoretically advanced approaches. For instance, DuPont analysis based on the decomposition scheme of Nissim and Penman (2001), shows that the capital structure decisions eroded shareholder profits, and specifically their impact was pronounced after the outbreak of the global financial crisis. Considering the unique operating characteristics of the health sector and the hostile macroeconomic environment, working capital management performed generally well, but with a considerable margin for further improvements, if more responsible policies are followed. What is more, thorough analysis revealed that in the last years operating returns were consistently negative and operating cash return were unable to cover effective interest fixed costs. If the external environment does change favorably and if more importantly, the business model of Hygeia does not focus on significant operating improvements, the long term prospect of the organization may be questioned.


financial statement analysis, ROE, ROA, asset turnover, profit margin, private health sector, DuPont analysis, Nissim & Penman approach