Consider the following financial statements for BestCare HMO, a not-for-profit managed care plan:

a. Perform a Du Pont analysis on BestCare. Assume that the peer group average ratios are as follows:

b. Calculate and interpret the following ratios for BestCare:

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BestCare HMO Statement of Operations and Change in Net Assets Year Ended June 30, 2020 Revenue: (in thousands) Healthcare premiums Fees and other revenue Interest and other income $26,682 1,689 242 $28,613 Total revenues Expenses: Healthcare costs $ 15,154 General and administrative expenses Selling expenses 7,893 3,963 Interest expense 385 Total expenses Net income $27,395 $ 1,218 Net assets, beginning of year $ 900 Net assets, end of year $ 2,118