Week 4 Financial Analysis Calculations

HCS/385 v7

Financial Analysis Calculations Worksheet

HCS/385 v7

Page 2 of 2

Financial Analysis Calculations Worksheet

Complete Parts 1, 2, and 3 using the provided prompts.

Part 1: Matching Questions

Match definitions A–J with the financial ratio question it corresponds to in the Financial Ratio Questions and Definitions Table. Do this by placing the letter of the definition in the Definitions column.

A. Indicates the desired level of performance an organization wants to compare itself with

B. Acid test ratio

C. Ratio analysis

D. Types of financial ratios

E. An expression of the relationship between two numbers as a single number

F. Operating margin

G. Current assists divided by current liabilities

H. Days in accounts receivable

I. Measures how organization's assets are financed and how able the organization is to pay for new debt

J. Measures how productive the fixed assets of the business are in generating operating revenues

Financial Ratio Questions and Definitions Table

Financial Ratio Questions	Definitions
1. What is a ratio analysis?
2. What are liquidity, profitability, activity, and capital structure?
3. What is current ratio?
4. What does the term benchmark mean?
5. Which financial ratio provides the most stringent test of liquidity?
6. What is the term average collection period also known as?
7. Three approaches are commonly used to analyze financial statements: horizontal analysis, vertical analysis, and which other approach?
8. Which term refers to measuring profits earned from the organization's main line of business?
9. What is a fixed asset turnover ratio?
10. What is capital structure ratio?

Part 2: Financial Ratio Calculations

Complete Financial Ratio Calculations in the Microsoft® Excel® file using the prompts provided.

Part 3: Financial Performance Summary

In the space provided, write a 150- to 350-word summary of your financial analysis from Part 2: Financial Ratio Calculations. Include the following in your summary:

· Make final recommendations as to whether the hospital should move forward with the purchase of Hillside, Inc. to improve the availability of medical supplies to your hospital.

· Address the financial outlook of Hillside, Inc. (i.e., Is it positive or negative?). Use the financial ratios to support your answer.

· Cite and reference for any sources used and format them according to APA guidelines.

Copyright 2023 by University of Phoenix. All rights reserved.

Copyright 2023 by University of Phoenix. All rights reserved.