Ratio Analysis

Paer 1

It is important to understand that when interpreting financial statements, the numbers alone may not provide the whole financial picture of an organization. Instead, you must analyze the statements using ratios, which are then compared to benchmarks across the health care industry. For this Assignment, examine the financial health of a community hospital.

To prepare for this Assignment:

Review the Week 8 Assignment 1 document provided to you by the Instructor. Examine the financial statements from the community hospital. Reflect on how you will use this financial data to calculate and analyze the organization’s financial ratios. Refer to Chapter 4 of Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applications for additional guidance.

Using the statement of operations and balance sheet for the community hospital, complete the “Week 8 Ratio Excel Template”.

Part 2

Before making hiring or purchasing decisions, health care organizations must consider whether the decision is financially profitable. By calculating break-even points, organizations are able to examine actual costs and make more sound financial decisions. For this Assignment, you use data from an imaging center and calculate break-even points.

To prepare for this Assignment:

Review the Week 8 Assignment 2 document provided to you by the Instructor. Examine the imaging center scenario. Reflect on how you will use the provided financial data to calculate break-even points. Refer to Chapter 9 of Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applications for additional guidance.

The Assignment:

Given the imaging center scenario and financial data, complete the “Week 8 Assignment 2 Break Even Excel Template”.