NATIONAL COMMUNITY PHARMACISTS ASSOCIATION

AssetsTABLE 11 • 2008 Common-Sized (Average) Balance SheetPercentage of Total Assets—By Third-Party Prescription ActivityLess than 80% Third Party 80% to 90% Third Party 90% or more Third PartyCurrent AssetsCash and cash equivalents 8.9% 19.3% 14.6%Accounts receivable 33.4% 22.8% 23.6%Inventory 35.7% 39.4% 40.8%Other current assets 5.4% 5.3% 3.7%Total Current Assets 83.4% 86.8% 82.7%Net fixed assets 11.7% 8.9% 13.4%Other assets 4.9% 4.3% 3.9%Total Assets 100% 100% 100%Liabilities and Owners’ EquityCurrent LiabilitiesNotes payable (within one year) 9.6% 7.4% 5.2%Accounts payable 13.9% 14.7% 17.8%Other current liabilities 6.9% 3.8% 7.2%Total Current Liabilities 30.4% 25.9% 30.2%Long-Term LiabilitiesNotes payable to owner(s) 3.8% 11.8% 6.6%Other long-term liabilities 17.6% 9.8% 11%Total Long-Term Liabilities 21.4% 21.6% 17.6%Total Liabilities 51.8% 47.5% 47.8%Total Owners’ Equity 48.2% 52.5% 52.2%Total Liabilities and Owners’ Equity 100% 100% 100%Medicare Part D PrescriptionsIn 2006, independent community pharmacy experiencedthe introduction of Medicare Part D prescription coverage.Results are reported specific to the portion of prescriptionscovered by Medicare Part D are presented in the followingtables. Pharmacies were classified as less than 20 percent,20 percent to 40 percent, and more than 40 percent MedicarePart D prescription volume as a percentage of totalprescriptions.Results appear in Tables 12, 13, and 14 on the pages thatfollow.Highlights of the Medicare Part D Prescriptions:n Unlike last year, for the average pharmacy, prescriptionsales as a percentage of total sales did not increase alongwith the increase in percentage of prescriptions filledunder Medicare Part D.n Median net operating income percentage was the lowestat 2.47 percent for pharmacies with more than 40 percentof prescriptions covered by Medicare Part D. However, thelowest median net income dollars was for those with 20percent to 40 percent covered under Medicare.n Median sales decrease as the percentage of MedicarePart D prescriptions increase.302009 NCPA Digest, sponsored by Cardinal Health