need answers for Financial statements analysis

The student, functioning as Director of Finance Department for a private large hospital operator $($Hospital Corporation of America $($HCA$),$ that went private, for the $3$rd time, in $2006$ with a transaction value of $$33$ billion, paid payouts of $$4\mathrm{.}5$ billion to buyout firms, which financed the $2006$ going private transaction, conducted asset writedowns and large dividend payments; and then went public again in $2011)$ was approached by Mr$.$ Bell, the Chief Financial Officer, whereby he expressed some concerns over worsened significantly short$-$term liquidity, which appeared to also be less than industry. Mr$.$ Bell requested you to conduct an assessment of present financial position $($as of December $31$ of $2011)$ in preparation for the development of a financial plan. Taking into consideration the concerns expressed by Mr$.$ Bell and based on information presented in Case $4\mathrm{.}2$ Hospital Corporation of America, information obtained from credible outside sources, and your professional experience, prepare a memorandum on financial position of the Hospital Corporation of America at the end of $2011,$ include the key financial ratios, such as long$-$term debt to assets, total profit margin, asset turnover ratio, return on assets, and others; discuss liquidity, capital structure, and profitability; and provide specific recommendations on the desired levels of investment for HCA, debt policy, and the reasonableness of required equity growth for financial planning. Be sure take into consideration the questions listed in Case $4\mathrm{.}2$ Hospital Corporation of America $($pp$.92-93)$ when preparing your statement. Part IV: Financial Statements Analysis

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he data and financial statements on the following pages were taken from the Hospital Corporation of America $10-$K report dated February $24,2012,$ which was accessed on the US Securities and Exchange Commission $($SEC$)$ website at

www$.$sec$.$gov$/$Archives$/$edgar$/$data$/860730/000119312512075882/0001193125.12\mathrm{.}075882-$index.htm on January $8,2016.$

$\backslash$table$[[\backslash$table$[[$HCA HOLDINGS INC.$],[$OPERATING STATISTICS$]]],[,2011,2010,2009,],[\backslash$table$[[$Number of$],[$hospitals at end$],[$of period$($a$)]],163,156,155,],[\backslash$table$[[$Number of$],[$freestanding$],[$outpatient$],[$surgery centers$],[$at end of$],[$period$($b$)]],108,97,97,],[\backslash$table$[[$Number of$],[$licensed beds at$],[$end of period$($c$)]],41,594,38,827,38,839,],[\backslash$table$[[$Weighted$],[$average licensed$],[$beds$($d$)]],39,735,38,655,38,825,],[$Admissions$($e$),1,620,400,1,554,400,1,556,500,],[\backslash$table$[[$Equivalent$],[$admissions$($f$)]],2,595,900,2,468,400,2,439,000,],[\backslash$table$[[$Average length$],[$of stay $($days$)($g$)]],4\mathrm{.}8,4\mathrm{.}8,4\mathrm{.}8,],[\backslash$table$[[$Average daily$],[$census$($h$)]],21,123,20,523,20,650,],[$Occupancy rate$($i$),53\%,53\%,53\%,1]]$

$($continued$)$ The accompanying notes are an integral part of the consolidated financial state$-$

ments. $[$Notes are available on the SEC website.$]$

$($continued$)$ Assignments

Evaluate the liquidity for each year by computing the current ratio. Discuss and

explain your results.

$[$Curent assets $/$ Current liabilities; $2010$ US hospital average $=2\mathrm{.}2]$

Evaluate the solvency for each year by computing the long$-$term debt$-$to$-$capital

ratio. Discuss and explain your results.

$[$Long$-$term debt $/($Long$-$term debt $+$ Net assets$)$; $2010$ US hospital average $=$

$26\mathrm{.}2\%]$

Evaluate profitability for each year by computing total profit margin.

$[$Net income $/$ Revenues; $2010$ US hospital average $=3\mathrm{.}4\%]$

Evaluate productivity for $2011$ by computing the asset turnover ratio.

$[$Total revenue $/$ Average total assets; $2010$ US hospital average $=1\mathrm{.}05]$ Evaluate performance for $2011$ by computing return on assets.

$[($Net income $+$ Depreciation $+$ Interest$)/$ Total assets; $2010$ US hospital average

$=8\mathrm{.}6\%$

Evaluate performance for $2011$ by computing return on equity.

$[$Net income $/$ Average net assets; $2010$ US hospital average $=6\mathrm{.}48]$ Part IV: Financial Statements Analysis

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Case $4\mathrm{.}2$: Hospital Corporation of America Holdings

Nose: This case is based on a real bealthcare entity.

Kcy concept: Computing actual ratios for a hospital corporation

T

he data and financial statements on the following pages were taken from the Hospital Corporation of America $10-$K report dated February $24,2012,$ which was accessed on the US Securities and Exchange Commission $($SEC$)$ website at

www$.$sec$.$gov$/$Archives$/$edgar$/$data$/860730/000119312512075882/0001193125.12\mathrm{.}075882-$index.htm on January $8,2016.$

$\backslash$table$[[\backslash$table$[[$HCA HOLDINGS INC.$],[$OPERATING STATISTICS$]]],[,2011,2010,2009,],[\backslash$table$[[$Number of$],[$hospitals at end$],[$of per