According to the research, financial ratio in healthcare measures the hospital's ability to meet its current liabilities
Question:
According to the research, financial ratio in healthcare measures the hospital's ability to meet its current liabilities with its current assets (assets expected to be realized in cash during the fiscal year). A ratio of 1.0 or higher indicates that all current liabilities could be adequately covered by the hospital's existing current assets. Financial ratios are sometimes referred to as accounting ratios or finance ratios, (Whaley CM, Demirkan S, Bai G., 2023). These ratios are important for assessing how a company generates revenue and profits using business expenses and assets in a given period. Internal and external stakeholders use financial ratios for competitor analysis, market valuation, benchmarking, and performance management
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella