Question: Examine the industry average ratios given in problems 17.4 and 17.5. Explain why the ratios are different between the managed care and nursing home industries.

Examine the industry average ratios given in problems 17.4 and 17.5. Explain why the ratios are
different between the managed care and nursing home industries.
Ratio Managed Care Nursing Homes
Total Margin 3.80% #REF!
Return on Assets (ROA) 8.00% #REF!
Return on Equity (ROE) 25.50% #REF!
Current Ratio 1.3 #REF!
Days cash on hand 41 days #REF!
Average Collection Period 7 days #REF!
Debt Ratio 69% #REF!
Times-interest-earned (TIE) Ratio 2.8 #REF!
Fixed Asset Turnover Ratio 5.2 #REF!
Total Asset Turnover Ratio 2.1 #REF!
Debt to Equity Ratio 2.2 #REF!
Equity Multiplier 3.2 #REF!

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