You will use the following information to answer two questions.

Memorial Hospital
Balance Sheet
September 30, 2020
(in thousands)
Current assets:
Cash	27,809
Accounts receivable, net	8,652
Medical supplies inventory	2,306
Prepaid expenses and other current assets	1,789
Total current assets	40,556
Property, plan, and equipment, net	53,806
Other assets	1,806
Total assets	96,168
Current liabilities
Accounts payable	3,820
Accrued compensation and benefits	5,687
Other accrued liabilities	2,811
Current portion of long-term debt	3,464
Total current liabilities	15,782
Long-term debt	45,718
Total liabilities	61,500
Owners' equity	34,668
Total liabilities and owners' equity	96,168

Memorial Hospital
Statement of Operations
Year Ended September 30, 2020
(in thousands)
Net patient service revenue	94,512
Operating expenses:
Personnel expense	43,874
Medical supplies expense	12,786
Other operating expenses	13,498
Depreciation expense	5,318
Total operating expenses	75,476
Income from operations	19,036
Other income (expenses):
Interest expense	(2,530)
Interest and other income, net	377
Total other income (expenses), net	(2,153)
Net income	16,883

Given the information benchmark information below, how would you evaluate the overall financial condition of Memorial Hospital. Be sure to explain your answer.

Benchmark

15.0%

1.5

1.67

37.6%

22.5%

2.0

85

20

40.0%

0.67

5.0

1.4