Question: Explain how the below ratio could be affected if there was an increase in Publicly traded hospital costs or supply chain disruptions occurred for materials
Explain how the below ratio could be affected if there was an increase in Publicly traded hospital costs or supply chain disruptions occurred for materials including equipment, medications and other supplies? And explain how these ratio can affect the Publicly traded hospital financial statement
Increase in costs
a. Debt service coverage ratio (Net Income/Debt Service)
b. Profit Margin Ratio (Net Income/Net Sales)
c. Return on Assets (Net Income/ total assets)
Supply chain disruptions
a. Current Ratio (Current Assets/Current Liabilities)
b. Inventory turnover (Net Sales/ Average Inventory)
c. Debt to total assets (debt/total assets)
d. Return on assets (Net Income/ total assets)
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