Finance Assignment #4

Assessment #4: Ratio Analysis (15%)

· Write a 4-6 page paper in which you discuss the value of ratio analysis in decision making for health care organizations. Complete the following in your paper:

· Discuss the meaning of ratio analysis in healthcare.

· Pick one (1) ratio from each major group from the financial statements.

· Liquidity ratios (Current ratio, Days Cash-on-Hand, Quick Ratio)

· Profitability ratios (ROE, ROA, Total Margin, Operating Margin)

· Leverage/Capital Structure Ratios (Debt ratio, Equity ratio, Debt to Equity Ratio)

· Nonfinancial Ratios (Occupancy rate, payer mix, ALOS, Expense per discharge, FTE per bed, HMO penetration)

· Discuss the ratio and provide examples with calculations

· Evaluate the meaning of the calculations related to the financial health of the organization.

· Explain the factors that affect the results.

 

You can also utilize the Help4UHMO Organization financial statements or a real-life health care organization to evaluate by researching their financial statements. You can use the organization from Assessment #2.

 

· Format your paper consistent with APA guidelines.

· Provide a minimum of two (2) cited sources in your paper.