. I . . . . . HCA312 Week 4 Assignment: Student Template A THE UNIVERSITY OF ARIZONA GLOBAL CAMPUS Define: Total asset turnover assesses the effectiveness of assets in generating revenue. It is calculated by dividing total operating revenue by total assets. The objective for managers is to optimize the revenue per dollar of an asset with the goal of utilizing all assets effectively. Analyze: The total asset turnover shows us that each dollar of assets generates $0. generates $0.18 in revenue, which is below the industry benchmark (50th percentile) This could mean that the practice is not effectively using its assets to generate revenue, which is not cost-effective overall. Factors such as a decline in patient volumes, competition concerns, and changes in the industry could all be potential issues or barriers contributing to the lack of revenue from assets, which could affect the financial health of Dr. Smith and Dr. Brown's physician practice overall. Current Ratio Define: . Analyze: | Debt Service Coverage Ratio Define Analyze Operating Margin Define Analyze Return on Assets Define Analyze: Current Asset Turnover Define Analyze Q Search 6/1 4X R Prison Home End PgUP m PODDE @ % 4 5 O E R T P. I . . . . . . 5 . . . 1 . . . 1 . . . 2 . . . 1 . . . 3 . . . 1 . . . 4 . . . 1 . . . 5 . . . 1 . . . 6 . . . 1 . . . 7 . . . 1 . . For Part 3, complete the following for each financial ratio: Thoroughly define and provide the purpose of each of the following five financial ratios. Analyze and compare the results for each ratio (which were calculated in Part 1: Calculation of Financial Ratios) with the data provided in the Ratio Benchmark and Median table (given here). Discuss what the data reveals about the financial health of Dr. Smith and Dr. Brown's physician practice. How might the results negatively or positively affect Dr. Smith and Dr. Brown's physician practice? Note: By reviewing the median and 50th percentile data from comparable physician practices (given in the table), you can gain insights into the financial status of Dr. Smith and Dr. Brown's physician practice." Ratio Benchmark and median table Ratio 50th percentile Median Current ratio 22 2 Debit service coverage ratio 149 1.1 Operating margin 4.45 26 Return on assets 4.04% 4.05% Current asset turnover 3 48 3.5 Please review this example for guidance. Example: Total Asset Turnover HCA312 Week 4 Assignment: Student Template A THE UNIVERSITY OF ARIZONA GLOBAL CAMPUS Define: Total asset turnover assesses the effectiveness of assets in generating revenue. It is calculated by dividing total operating revenue by total assets. The objective for managers is to optimize the revenue per dollar of an asset with the goal of utilizing all assets effectively. Analyze: The total asset turnover shows us that each dollar of assets generates $0.18 in revenue, which is below the industry benchmark (50th percentile). This could mean that the practice is not effectively using its assets to generate revenue, which is not cost-effective overall. Factors such as a decline in patient volumes, competition concerns, and changes in the industry could all be potential issues or barriers contributing to the lack of revenue from assets, which could affect the financial health of Dr. Smith and Dr. Brown's physician practice overall. Current Ratio Define: Analyze: Debt Service Coverage Ratio Define: Q Search 7:54 PM 6/10/2024 PrisCOFE Home End FO PgUP R PODNET & 5 6 7 8 O