Financial Ratio Analysis – savvyessaywriters.net | Savvy Essay Writers
Financial Ratio Analysis – savvyessaywriters.net | Savvy Essay Writers
Savvy Essay Writers Business & Finance Assignment Help
The TEXTBOOK needed isFinancial Management of Health Care Organizations, 3rd EditionFinancial Ratio AnalysisSearch for a Hospital’s Annual Report on the web, or you can also look for a hardcopy annual report of a Hospital. Find the most recent Annual report. Annual reports older than 2008 is not accepted. Most Annual Reports contain the Hospital’s Financial Statements. You will use the financial Statements to prepare the Financial Ratio Analysis of the Hospital you select.NOTE: Be careful not to select a Hospital System!. Hospital Systems consist of several hospitals of varying bed sizes. Most times their financial statements are consolidated. As such you may be unable to compare and benchmark your ratios to the industry standards in item #4 below.Prepare a 2-3 year financial ratio analysis. You must calculate each of the ratios listed in your textbook. The sample below only serves as a guide for what your assignment may look like when complete.Include a brief commentary including both benchmarking and trend analysis. Study the example below.Refer to Financial Ratio National Standards Table, Exhibit 4-16a 0n page 167 in your text for industry benchmarks. Note the hospital size (# of Beds) and select the Median Ratio appropriate for your hospital.Don’t forget to include a brief description of the company. Your description should include the following:An overview of the hospitalMajor types of services provided by the hospitalNumber of facilities and locationType of legal entityA brief history of the hospitalFinancial Ratio Analysis Sample AssignmentHere is an example of what your financial ratio analysis might look like when you are through:1. Current Ratio2008: 1.902009: 1.69Comment: 1.9 is in good agreement with HCIA/HCFA value of 1.95 for a 100-249 bed hospital. However, from 1996-1997, there is a decrease to 1.69, suggesting concern that asset increase did not keep up with increase in liabilities.2. Days in accounts receivable2008: 101.92009: 71.29The HCIA/HCFA average is 66. Both 1996 and 1997 are high, but there is a clear decreasing trend in ’97, which is favorable3. Days cash on hand:2008: 27.22009 23.71The HCIA/HCFA standard is 47 Both 1997 and 1996 are low, and the trend to 1997 is decreasing and is a concern about cash flow problems.4. Times interest earned2008: 4.702009: 1.395The HCIA/HCFA average is 4.29. In 1996, the ratio was excellent at 4.70. However, in 1997 the ratio decreased significantly.5. Debt service coverage2008: 5.642009: 3.62HCIA/HCFA value is 3.35 for a 1-99 bed hospital-both figures are well above standard, but there is a decreasing trend. Concern is whether the trend would continue and debt service capability would be jeopardized.6. Total asset turnover2008: 0.6852009: 0.7164The HCIA/HCFA value is 1.02 for a 1-99 bed hospital. Both values are low, but there is a slight upward trend in ’97.
Team of Professional Essay Writers
Savvyessaywriters.net is a trusted essay service that connects learners seeking assistance with top-ranked experts. Every essay writer on our team has a unique rating based on the percentage of successful orders and customer reviews. Check out our pros’ profiles to hire the most suitable one.
