Question: The below Financial Statement Ratio Analysis has been performed on a hospital. Requirement: Provide a comprehensive comments on the improvement and/or the deterioration of the

The below Financial Statement Ratio Analysis has been performed on a hospital.

Requirement: Provide a comprehensive comments on the improvement and/or the deterioration of the hospital's liquidity, profitability, solvency and efficiency through these 3 years.

The below Financial Statement Ratio Analysis has been performed on a hospital.

Industry Median Dec-2017 Dec-2018 Dec-2019 1.31 Liquidity Ratios Current Ratio Working Capital Quick Ratio Cash Ratio 1.87 67697.96 1.13 1.52 1.48 1.79 0.58 0.42 0.38 1.1 1.89 2.07 2.02 80.3 192.85 176.19 181.07 Efficiency Ratios Receivables Turnover # of days for Receivables Turnover Inventory Turnover # of days for Inventory Turnover Operating Cycle 4.8 6.80 8.02 7.70 19.0 53.65 45.54 47.43 27.5 246.50 221.73 228.50 0.39 0.39 0.38 Solvency Ratios Debt-to-Assets Ratio Debt-to-Equity Ratio Assets to Shareholders' Equity Ratio (Equity Multiplier) Interest Coverage Ratio 0.64 0.63 0.62 0.23 1.93 1.64 1.63 1.62 -18.50 -62.16 -6.08 39.9% 70.4% 71.8% 73.7% 13.7% 13.7% 17.2% 13.0% Profitability Ratios Gross Profit Margin Ratio Operating Profit Margin Net Profit Margin ROA (Return on Assets) ROE (Return on Equity) 10.7% 11.1% 13.4% 11.6% 2.0% 6.6% 8.6% 7.7% 2.9% 10.7% 14.0% 12.6%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

i need annual reports for 2020 and 2019. Question 1 (10 Marks) It is global knowledge that liquidity and liquidity ratios and other major ratios are used by analysts to determine a company's solvency...

AED ASSETS Cash and bank balances 6 Trade and other receivables 7 Development properties & Investment in associate 9 Other financial assets 10 Financial investments 11 Right-of-use assets 12 Total...

Below, pages 1-13 is an article that needs to be read through. The very last picture is a screenshot of questions/instructions that need to be answered based off of reading the article (questions 1-4...

Article is in order below. Article questions are at the end (last picture). I need all of the questions at the bottom and that last picture answered. Assessing a Company's Future Financial Health...

Assessing a Companys Future Financial Health Assessing the long-term financial health of a company is an important task for management as it formulates goals and strategies and for outsiders as they...

Project The required tasks are detailed below: (1) Prepare A common-size analysis [for 3 consecutive years]: Vertical analysis is performed for the income statement and balance sheet with comments...

Project The required tasks are detailed below: 1) Prepare A common-size analysis [for 3 consecutive years]: Vertical analysis is performed for the income statement and balance sheet with comments...

Project The required tasks are detailed below: (1) Prepare A common-size analysis [for 3 consecutive years]: Vertical analysis is performed for the income statement and balance sheet with comments...

Using the results of ratio analysis and common-size vertical analyses to explain your answer. provide specific comments on your analysis you have performed in this part of the case analysis for both...

Rebecca is a doctor with an AGI of $125,000 before consideration of income or loss from her dog breeding business. Her home is on 15 acres, 10 of which she uses to house the animals and provide them...

Suppose that a random variable X has the uniform distribution on the interval [0, 1]. Determine the p.d.f. of (a) X2 (b) X3. (c) X1/2.

7 In pairs or in a small group, discuss. Sofia, Zara and Arun discuss what to write for this problem. I think of a number, n. I divide by 3, then multiply by 2. What do you think? Make a conjecture...

" It takes ten years to build up your company's reputation, but only ten seconds for you to lose it . " This comment from investor Warren Buffett applies to the way _ _ _ _ _ _ _ _ can hurt a...

Every October, your company has an open enrollment period during which employees select their health and dental plans for the next calendar year. Once the open-enrollment period ends, no coverage...

Assume the role of the vice president of sales at Rampart Publishing. Early in February, you attended a professional conference in another state. Dr. Daniel Loman, the motivational speaker who...

Technology.Global.Dahui Lian, a Shanghai official with whom you have met on several past visits to China, is planning to come to the United States.Through your visits and subsequent e-mail exchanges,...