FM007: Analyze Financial Data
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FM007_Rubric1.pdf
©2015 Walden University 1
FM007: Analyze Financial Data: Make recommendations for organizational decisions based on analyses of financial data.
Assessment Rubric
0 Not Present
1 Needs Improvement
2 Meets Expectations
3 Exceeds Expectations
Part I: Analyze Organizational Financial Data
Sub-Competency 1: Analyze financial and operational data to make effective management decisions.
Learning Objective 1.1: Calculate and interpret net sales, operating expenses, operating income, and net income data to determine significance of trend result.
Calculation and interpretation of net sales, operating expenses, operating income, and net income data to determine significance of trend result is missing.
Calculation of the 5-year net sales, operating expenses, operating income, and net income is incomplete or inaccurate. Interpretation of the data and/or the explanation of the significance of the trend result is inaccurate, unclear, or incomplete.
Response accurately calculates the 5-year net sales, operating expenses, operating income, and net income. Response accurately interprets the data and effectively uses it to explain the significance of the trend result.
Demonstrates the same level of achievement as “2,” plus the following: Explanation of the significance of the trend results includes detailed examples or illustrative graphics.
Learning Objective 1.2: Calculate and interpret profit margin, asset turnover, return on assets, and return on net worth data to assess a company’s profitability.
Calculation and interpretation of profit margin, asset turnover, return on assets, and return on net worth data to assess a company’s profitability is missing.
Calculation of the 5-year total profit margin, asset turnover, return on assets, and/or return on net worth is incomplete or inaccurate. Interpretation of the data and/or the explanation of the company’s profitability is inaccurate, unclear, or incomplete.
Response accurately calculates 5-year total profit margin, asset turnover, return on assets, and return on net worth. Response accurately interprets the data and uses it to assess the company’s profitability.
Demonstrates the same level of achievement as “2,” plus the following: Response provides additional context for these calculations by comparing them to other healthcare organizations or figures for the industry.
Learning Objective 1.3: Calculation and Calculation of the 5-year Response accurately Demonstrates the same
©2015 Walden University 2
0 Not Present
1 Needs Improvement
2 Meets Expectations
3 Exceeds Expectations
Calculate and interpret current ratio, day’s cash on hand, and working capital data to evaluate a company’s liquidity.
interpretation of current ratio, day’s cash on hand, and working capital data to evaluate a company’s liquidity is missing.
current ratio, day’s cash on hand, and/or working capital is inaccurate or incomplete. Interpretation of Calculations to evaluate the company’s liquidity is inaccurate or unclear.
calculates the 5-year current ratio, day’s cash on hand, and working capital. Response accurately and clearly interprets the data in order to explain the company’s liquidity.
level of achievement as “2,” plus the following: Response provides additional context for these calculations by comparing them to other healthcare organizations or figures for the industry.
Learning Objective 1.4: Calculate debt ratio and times interest earned ratio to evaluate a company’s long-term solvency.
Calculation and interpretations of debt ratio and times interest earned ratio to evaluate a company’s long-term solvency is missing.
Calculation of the 5-year debt ratio and times interest earned ratio is inaccurate or incomplete. Interpretation of Calculations to evaluate the company’s long-term solvency is inaccurate or incomplete.
Response accurately calculates the 5-year debt ratio and times interest earned ratio. Response accurately and clearly interprets the data in order to explain the company’s long term solvency.
Demonstrates the same level of achievement as “2,” plus the following: Response provides additional context for these calculations, by comparing them to other healthcare organizations or figures for the industry.
Learning Objective 1.5: Conduct a DuPont analysis to determine the organization’s DuPont characteristics and trends across an analysis period.
The DuPont analysis is missing.
The DuPont analysis for each of the five most recent years is inaccurate, or the analysis is only provided for some of the five most recent years. Interpretation of the company’s DuPont analysis characteristics and trends is inaccurate
Response accurately applies a DuPont analysis for each of the five most recent years. Response accurately and clearly interprets the company’s individual DuPont characteristics and trends.
Demonstrates the same level of achievement as “2,” plus the following: Response provides additional context for these calculations, by comparing them to other healthcare organizations or figures for the industry.
©2015 Walden University 3
0 Not Present
1 Needs Improvement
2 Meets Expectations
3 Exceeds Expectations
or unclear.
Learning Objective 1.6: Make recommendations for management decisions based on evaluation of financial information.
Recommendation for use of financial data to make effective decisions is missing.
Recommendation for or against purchasing an organization is unclear. Rationale supporting the recommendation for or against the purchase is unclear or incomplete, or the data cited in the rationale is irrelevant or unclear.
Response includes a recommendation for or against purchasing an organization is based on the operational and financial analysis of the organization up for sale. Response includes a clear and logical rationale supporting the recommendation and data is used to support the recommendation.
Demonstrates the same level of achievement as “2,” plus the following: Response provides additional rationale for this recommendation by comparing this company’s data to industry benchmarks.
Part II: Conduct an Operating Indicator Evaluation
Sub-Competency 2: Make effective recommendations based on an operative indicator evaluation.
Learning Objective 2.1: Apply mathematical principles to accurately calculate cash inflows and outflows.
Application of mathematical principles to accurately calculate cash inflows and outflows is missing.
Calculation of cash inflows and cash outflows is inaccurate or incomplete, or response is not relevant to the case presented.
Response accurately calculates the cash inflows and outflows for each year in the case presented.
Demonstrates the same level of achievement as “2,” plus the following: Response provides additional context for these calculations, by commenting on how they compare to other healthcare organizations or figures for the industry.
Learning Objective 2.2: Apply strategies to accurately calculate the
Application of strategies to accurately calculate the profitability of a capital
Calculations of the NPV, IRR, MIRR, payback period, and discounted
Response accurately calculates the NPV, IRR, MIRR, payback period,
Demonstrates the same level of achievement as “2,” plus the following:
©2015 Walden University 4
0 Not Present
1 Needs Improvement
2 Meets Expectations
3 Exceeds Expectations
profitability of a capital project.
project is missing. payback period of capital project are incomplete or inaccurate.
and discounted payback period of a capital project.
Response provides additional context for these calculations, by commenting on how they compare to other healthcare organizations or figures for the industry.
Learning Objective 2.3: Make recommendations for management decisions based on operative indicator evaluation.
Recommendations for management decisions based on an operative indicator evaluation are missing.
Recommendation as to whether the project in the case presented is acceptable is vague. Rationale is given to support the recommendation does not include information (or includes misinformation) from calculations, and/or it does not highlight (or erroneously highlights) the costs and benefits of implementing the project, and/or it does not take into consideration (or misinterprets) the corporate policy for accepting the capital project.
Response states a clear recommendation as to whether the project in the case presented is acceptable. Clear and logical rationale is given to support the recommendation. Rationale includes information from calculations to support the recommendation. Rationale highlights the costs and benefits of implementing the project. Rationale takes into consideration the corporate policy for accepting the capital project.
Demonstrates the same level of achievement as “2,” plus the following: Rationale includes a compelling argument for the recommendation based on the overall evaluation.
©2015 Walden University 5
0 Not Present
1 Needs Improvement
2 Meets Expectations
3 Exceeds Expectations
PS003: Technology: Use technology tools effectively.
Learning Objective PS 3.2: Apply the features of Excel to communicate information effectively.
Excel spreadsheet is incomplete or missing.
Excel spreadsheet has some formatting issues and is difficult to interpret.
Excel spreadsheet has effective formatting, and the data can be easily read and interpreted.
Excel spreadsheet includes format and design elements that bring enhanced clarity to the spreadsheet.
Part III: Conduct a Budgeting Evaluation
Sub-Competency 3: Conduct a budgeting evaluation.
Learning Objective 3.1: Calculate a hospital’s profit forecast and related projections.
Calculation of a hospital’s profit forecast and related projections is missing.
Calculation of the hospital’s original profits and related projections are incomplete, inaccurate, or missing, or are not relevant to the case presented. Explanations of calculations are unclear or missing.
Response includes complete and accurate calculations of the hospital’s original profits and related projections for the case presented. Response includes clear explanations of each calculation.
Demonstrates the same level of achievement as “2,” plus the following: In addition to making a correct projections, response effectively consider all relevant factors such as taxes, depreciation, etc. that need to be considered in deciding the hospital’s profit projection.
Learning Objective 3.2: Identify inpatient service lines that are over budget and those that are over budget after accounting for workload increases.
Identification of inpatient service lines that are over budget and which inpatient service lines are over budget after accounting for workload increases is missing and not provided.
Response calculations of inpatient service lines that are over budget and/or inpatient service lines that are over budget after accounting for workload increases, are incomplete or inaccurate, and/or are
Response includes accurate and complete calculations of inpatient service lines that are over budget and inpatient service lines that are over budget after accounting for workload increases for
Demonstrates the same level of achievement as “2,” plus the following: Response includes a chart or graph to support the explanation of Calculations.
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0 Not Present
1 Needs Improvement
2 Meets Expectations
3 Exceeds Expectations
not relevant to the case presented. Explanations of Calculations are unclear or missing.
the case presented. A clear explanation is provides for each calculation.
Learning Objective 3.3: Recommend actions to be taken to improve performance in a fee-for- service hospital.
Recommendation of actions to be taken to improve performance (at the mid-year point) in a fee-for-service hospital is missing.
Recommendation of actions that should be taken at the mid-year point for a fee-for-service hospital lack detail or are not logical. Response is not relevant to the case presented in terms of focusing on the problem areas and/or identifying those who might provide ideas for "best practices" based on their performance.
Response clearly details recommendations for two logical actions that should be taken at the mid-year point for a fee-for-service hospital. Response is relevant to the case presented, focusing on the problem areas and identifying those who might provide ideas for "best practices" based on their performance.
Demonstrates the same level of achievement as “2,” plus the following: Response mentions both focus of the attention, and who might provide ideas for "best practices" based on desired performance.
Learning Objective 3.4: Recommend actions to be taken for a capitated hospital.
Identification of the two actions that should be taken for a capitated hospital is missing and not provided.
Response identifies only one action that should be taken at the mid-year point for the fee-for- service hospital in the case presented, or two actions are identified but are not logical or related to the case presented. Actions do not take into
Clearly details recommendations for two logical actions that should be taken at the mid-year point for the fee-for- service hospital in the case presented. Actions take into consideration the expectations of a
Demonstrates the same level of achievement as “2,” plus the following: Response identifies more than two clear and logical actions that should be taken at the mid-year point for the fee-for- service hospital in the case presented.
©2015 Walden University 7
0 Not Present
1 Needs Improvement
2 Meets Expectations
3 Exceeds Expectations
consideration the expectations of a capitated hospital.
capitated hospital.
PS001: Written Communication: Demonstrate graduate-level writing skills.
Learning Objective PS 1.1: Use proper grammar, spelling, and mechanics.
Multiple major and minor errors in grammar, spelling, and/or mechanics are highly distracting and seriously impact readability.
Multiple minor errors in grammar, spelling, and/or mechanics are distracting and negatively impact readability.
Writing reflects competent use of standard edited American English. Errors in grammar, spelling, and/or mechanics do not negatively impact readability.
Grammar, spelling, and mechanics reflect a high level of accuracy in standard American English and enhance readability.
Learning Objective PS 1.2: Organize writing to enhance clarity.
Writing is poorly organized and incoherent. Introductions, transitions, and conclusions are missing or inappropriate.
Writing is loosely organized. Limited use of introductions, transitions, and conclusions provides partial continuity.
Writing is generally well- organized. Introductions, transitions, and conclusions provide continuity and a logical progression of ideas.
Writing is consistently well-organized. Introductions, transitions, and conclusions are used effectively to enhance clarity, cohesion, and flow.
Learning Objective PS 1.3: Apply APA style to written work.
APA conventions are not applied.
APA conventions for attribution of sources, structure, formatting, etc., are applied inconsistently.
APA conventions for attribution of sources, structure, formatting, etc., are generally applied correctly in most instances. Sources are generally cited appropriately and accurately.
APA conventions for attribution of sources, structure, formatting, etc., are applied correctly and consistently throughout the paper. Sources are consistently cited appropriately and accurately.
Learning Objective Vocabulary and tone are Vocabulary and tone have Vocabulary and tone are Vocabulary and tone are
©2015 Walden University 8
0 Not Present
1 Needs Improvement
2 Meets Expectations
3 Exceeds Expectations
PS 1.4: Use appropriate vocabulary and tone for the audience and purpose.
inappropriate and negatively impact clarity of concepts to be conveyed.
limited relevance to the audience.
generally appropriate for the audience and support communication of key concepts.
consistently tailored to the audience and effectively and directly support communication of key concepts.
PS005: Critical Thinking and Problem Solving: Use critical-thinking and problem-solving skills to analyze professional issues and inform best practice.
Learning Objective PS 5.1: Analyze assumptions and fallacies.
Analysis of assumptions is missing.
Response is weak in assessing the reasonableness of assumptions in a given argument. Response does not adequately identify and discuss the implications of fallacies or logical weaknesses in a given argument.
Response generally assesses the reasonableness of assumptions in a given argument. Response identifies and discusses the implications of fallacies and/or logical weaknesses in a given argument.
Response clearly and comprehensively assesses the reasonableness of assumptions in a given argument. Response provides a detailed and compelling analysis of implications of fallacies and logical weaknesses in a given argument.
Learning Objective PS 5.2: Generate reasonable and appropriate assumptions.
Assumptions are missing. Response does not adequately present and discuss key assumptions in an original argument.
Response presents and discusses key assumptions in an original argument.
Response justifies the reasonableness and need for assumptions in an original argument.
Learning Objective PS 5.3: Assess multiple perspectives and alternatives.
Assessment of multiple perspectives is missing.
Response does not identify nor adequately consider multiple perspectives or alternatives.
Response identifies and considers multiple perspectives and alternatives.
Response justifies selection of chosen alternative relative to others.
Learning Objective PS 5.4:
Problems and solutions are not identified.
Response presents solutions, but they are
Response presents solutions that are
Response presents compelling supporting
©2015 Walden University 9
0 Not Present
1 Needs Improvement
2 Meets Expectations
3 Exceeds Expectations
Use problem-solving skills. ineffective in addressing the specific problem.
practical and work in addressing the specific problem.
arguments for proposed solutions.
