Ascension health grew marginally in 2019 as exhibited by the 3 per cent growth in total assets as well as a 2 per cent growth in total net assets. On the assets side of the balance sheet, the items with the most significant percentage increase include the amounts due from brokers, estimated third party payor and Others. The payments due from brokers represent the most significant percentage increase in the analysis with 254 per cent, followed by Estimated third party payor settlements that scored a 38 per cent increase. Other current assets had the third-highest increase in the year with an increase of 23percent. On the side of the equity and liabilities, the line items with the most massive increase include the amounts due from brokers, pension and other post-retirement liabilities, long term debt subject to short term remarketing arrangements and the current portion of the long-term liabilities. Pension and other post-retirement liabilities account for the most significant increase in the equity and liabilities side with a 73 per cent increase in 2019. Amounts due to brokers account for the second largest on the liabilities side with an increase of 46per cent followed by long term debt subject to short term remarketing arrangements at 41 per cent. The current portion of the long-term debt recorded an increase of 24percent in the year.
The items that registered the highest decline include the net capitalized software costs at 19 per cent, the estimated third-party payor settlements at 12 per cent and self-insurance liabilities with an 11 per cent drop. Companies that experience high growth in assets report depressed earnings in the subsequent periods due to optimum investment and mispricing. This finding was done in companies in the emerging markets between 2005 and 2013 (Gonenc & Ursu, 2018) . Evidence from the US markets reveals that organizations with an elevated asset expansion record low stock earnings in the equity markets. The negative impact of asset increase is regular in the advanced international markets that have an efficient system of pricing stocks (Watanabe et al., 2013) . The converse relationship between asset increase and returns is attributed to the impact of optimum investment other than market timing or overinvestment.
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References
Gonenc, H., & Ursu, S. (2018). The Asset Growth Effect and Investor Protection in Emerging
Markets: The Role of the Global Financial Crisis. Emerging Markets Finance & Trade , 54 (3), 491–507. https://doi-org.su.idm.oclc.org/10.1080/1540496X.2017.1411258
Watanabe, A., Xu, Y., Yao, T., & Yu, T. (2013). The asset growth effect: Insights from
international equity markets. Journal of Financial Economics , 108 (2), 529–563. https://doi-org.su.idm.oclc.org/10.1016/j.jfineco.2012.12.002
