- If you buy a$100 item at Walmart, what did Walmart pay for
that item?Look atWalmart’s 2015 Income Statement(Page 36 in the annual
report, page 38 of the PDF document). It shows Cost of Sales of $365
billion on net sales of $482 billion, which is 76%. Thus, on average,
Walmart paid $76 for the item and sold it for $100.
Look up the income statement of some other retailer (Whole Foods) and do the same analysis.
Use
the company’s actual income statement from their annual report. DO NOT
get data from an aggregator like Yahoo Finance, Nasdaq, Morningstar,
etc.
Include a link to the income statement you are using, including page numbers, if applicable.
- Do
an internet search on Medical Loss Ratio and spend a few minutes
reading about it. Under the Health Care Reform law, insurers and HMOs
have to pay rebates to policyholders if they don’t meet an MLR standard
of at least 80 percent (for individuals and small groups) or 85 percent
(for large groups).
Here is an example: Look at Aetna’s 2015
annual report at the following link:Aetna Reports, Filings and
Statements On page 82 of the annual report (page 88 of the Adobe file)
you’ll find the income statement. It shows they collected Health Care
Premiums of $51,618and spent Health Care Costs of $41,712. That is about
81%. Thus, for every dollar collected in premiums, they paid out 81
cents in benefits.
Look up the annual report and income statement
(again, actual income statement—no aggregators) of a publicly-traded
health insurance company.
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