Examine the industry average ratios given in problems 17.4 and 17.5. Explain why the ratios are different
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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. | ||||||||
| 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! | ||||||
Expert Answer:
The differences in the ratios between managed care and nursing home industries can be attributed to various factors such as business models operationa... View the full answer
Related Book For 
Gapenski's Healthcare Finance An Introduction To Accounting And Financial Management
ISBN: 9781640551862
7th Edition
Authors: Kristin L. Reiter, Paula H. Song
Posted Date:
