This same principle is applied to business. The financial information can be obtained from a health care
Fantastic news! We've Found the answer you've been seeking!
Question:
This same principle is applied to business. The financial information can be obtained from a health care organization by reviewing their financial statements, as we discussed in Week 1. Financial statements can tell a lender if the organization is making enough money (revenue) to afford the debt associated with a loan.
Review the financial ratios discussed in "A Further Look at Financial Statements," and "Reporting and Analyzing Inventory," ofAccounting.
Select 1 of the following financial ratios listed below to use for this discussion:
- Current ratio
- Debt to asset ratio
- Free cash flow ratio
- Price-earnings ratio
- Profit margin ratio
- Return on total assets ratio
- Working capital ratio
Use your selected financial ratio and respond to the following
Explain how the financial ratio you selected is calculated.
- Explain why a financial institution or investor would use the financial ratio.
- Explain what the result of the financial ratio calculation would tell you about the organization's financial status.
- Give an example of how you would use 1 of the financial ratios in your personal finances or current profession.
Related Book For
Basic Technical Mathematics
ISBN: 9780137529896
12th Edition
Authors: Allyn J. Washington, Richard Evans
Posted Date: