Preview

Essential Financial Ratios In Healthcare

Good Essays
Open Document
Open Document
271 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Essential Financial Ratios In Healthcare
The article is all about the essential financial ratios to evaluate the health care industry such as hospitals and pharmaceutical company regardless of the stock of health care companies. There are three key ratios such as cash flow coverage ratio, debt to capitalization ratio, and operating margin. These ratios reveal how many liabilities and how much debt the health care companies have and how much they operate a margin. First, the cash flow coverage ratio is crucial to hospitals and having adequate cash flow is critical to their economic existence. This ratio equals to 1 or greater than 1 more favorable. Second, the debt to capitalization ratio is important for assessing firms that have substantial capital outflow. The ratio indicating
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Methods of Analysis (Acc281) Ashford
    • 925 Words
    • 4 Pages

    Methods of Analysis (Acc281) Ashford

    In this report, we will revisit and evaluate the three methods of analysis: horizontal, vertical, and ratio. Next, we are to summarize each method, and discuss how the financial information is used to make a particular decision. Then, provide a scenario in a health care situation in which a given method of analysis might be used. I will explain each analysis beginning in order of the Horizontal Analysis with the Vertical Analysis and lastly the Ratio Analysis. Each analysis is different from the next and although the horizontal and vertical are similar, they show different aspects of a company by year. A ratio analysis is a combination of many different analyses and will be gone through individually so they are understandable.…

    • 925 Words
    • 4 Pages
    Better Essays
    Read More
  • Good Essays

    Summary Of Palomar Health And Tri-City Medical Center: Comparative Analysis
    • 340 Words
    • 2 Pages

    Summary Of Palomar Health And Tri-City Medical Center: Comparative Analysis

    The intention of this research paper is to further understand the financial statement of two distinct hospitals located in San Diego, California area. A comparative analysis of the financial report for Palomar Health and Tri-City Medical Center will be briefly discussed individually in each important financial outcome’s to determine similarities, differences, geographical population admission rates. To analyze further, a breakdown between the hospital’s revenue will be compared in the paper as well.…

    • 340 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    patton fuller
    • 1040 Words
    • 4 Pages

    patton fuller

    The unaudited financial statement current ratio shows that the hospital is able at 24 to 1 ratio to pay their obligations. Since the ratio is higher than one, it tells us that the company is in good financial health. If we compare this unaudited ratio to the audited ratio we can see a change of ratio. The audited current assets are at $127,867 and the current liabilities are at $23,807. The ratio is represented by a 5 to 1. The ratio in both situations shows an efficiency of the hospital operating cycle and its ability to turn its products into cash. There is a significant change in the ratio when comparing the financial statements. It is important to understand that a high current ratio does not always mean a good thing because it depends on how fast the company can convert into cash their current…

    • 1040 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    FINANCIAL RATIOS
    • 616 Words
    • 4 Pages

    FINANCIAL RATIOS

    Financial ratios are indicators of a company’s performance as discernable from the company’s Balance Sheet and income Statement. We will discuss some of the simple ratios of a company and talk about their significance.…

    • 616 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Riordan Financial Ratios Bsa500
    • 2439 Words
    • 10 Pages

    Riordan Financial Ratios Bsa500

    This is a brief analysis and comparison of select financial ratios of four companies: two in the manufacturing and two in the retail food industries. The financial ratios analyzed are the current ratio, debt ratio, profit margin, return on assets. I should point out that I used the most recent financial reports provided for each company, although in some cases they may not represent the same years. All dollar figures are in thousands.…

    • 2439 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Better Essays

    Xacc 280 Final
    • 1225 Words
    • 5 Pages

    Xacc 280 Final

    Liquidity, solvency, and profitability are the three characteristics that will be used to see a company’s success. A simple financial statement will not demonstrate the company’s power because it is a general idea of the company’s position and does not display business developments. The company’s business developments are vital for potential investors because they determine vertical and horizontal analysis. These characteristics are also used to define the ratio analysis. Ratio analysis is dividing two numbers to get a number of percentages that can be used to compare companies in the same industry. Examining the entire company’s financial trends for a set period of time, an investor will see a factual description of the company’s financial condition. This is the financial analysis an investor desires to review prior to spending money.…

    • 1225 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Cango Financial
    • 1115 Words
    • 5 Pages

    Cango Financial

    The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measured on critical areas such as profitability, its ability to stay solvent, the amount of debt exposure and the effectiveness in resource utilization, is performing financial analysis where a set of ratios provides a snapshot of company performance and future prospects. Financial analysis is also a very useful technique that forms a basis for making key decisions about company operations. In addition to internal company members, these ratios are used by potential investors and shareholders to make investment decisions about the company.…

    • 1115 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    kroger, essay
    • 39938 Words
    • 160 Pages

    kroger, essay

    Financial Ratio Analysis…………………………………………………..…….. 83 1 Liquidity Analysis……………………………………………………………………84 Profitability Analysis……………………………………………………………… .98 Capital Structure Analysis………………………………………. …………….109 SGR/IGR Analysis………………………………………………..……………….115 Financial Statement…

    • 39938 Words
    • 160 Pages
    Good Essays
    Read More
  • Good Essays

    Financial Ratios
    • 536 Words
    • 3 Pages

    Financial Ratios

    The creditable performance calculation for the Valley of the Sun United Way (VSUW) is used to guarantee that their organization will perform at their most likely current ratio, long-term solvency ratio, contribution ratio, and general and management/expense ratio (Goetsch & Davis, 2010).…

    • 536 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Nike and Under Armour (Accounting Paper)
    • 5144 Words
    • 21 Pages

    Nike and Under Armour (Accounting Paper)

    Nike was incorporated in 1968 and has become arguably synonymous with elite footwear/apparel amongst the world population (Nike 10K, 2009). Nike’s primary business “is the design and development and worldwide marketing of high quality footwear and apparel” (2009, pg.1). In addition, Nike also designs/markets sports equipment and accessory products. Nike puts a heavy emphasis on investing in the innovation and design of their products to give their customers a high-quality product. Nike is the largest seller of athletic footwear and apparel in the world (2009). Nike sets the bar for other companies in the sports apparel/footwear industry, like Under Armour.…

    • 5144 Words
    • 21 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Financial Ratios
    • 273 Words
    • 2 Pages

    Financial Ratios

    Current Ratio- the current ratio is current assets divided by current liabilities. In the data from 2002 in Appendix D the current assets equal $104,296.00 and the current liabilities equal $139,017.00 the current ratio equals 0.75.…

    • 273 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Ratio Analysis In Health Care
    • 726 Words
    • 3 Pages

    Ratio Analysis In Health Care

    The health care industry is a multi-million dollar industry. Health insurance, providers, technology management, and inpatient and outpatient procedures are among the many terms that we hear nowadays within this industry. The principal phrase that seems to be ringing in the ears of the government and policymakers are debt and cost-control. There are fundamental concepts that should be understood throughout the health care industry as it relates to finance. On one hand, many individuals have a general knowledge concerning health care organizations from the standpoint of insurance, copays, and deductibles. These constructs are more familiar to a person that has any health care needs due to the routine of having to provide some form of payment…

    • 726 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Pfizer Financial Analysis
    • 1361 Words
    • 6 Pages

    Pfizer Financial Analysis

    As we take a look at the different ratios of the company. Pfizer Inc.'s current ratio deteriorated from 2007 (2.15) to 2008 (1.59) but then slightly improved from 2008 to 2009 from 1.59 to 1.66. If we compare these numbers to the industry average of health care, overall Pfizer is performing better to the industry and Pfizer current ratio is higher than the industry in 2007 and 2008. While in 2009 it is closer to the industry average of 1.72.Liquidity ratios are used to evaluate the firm’s ability to pay its short-term debt obligations such as Accounts Payable and accrued taxes and wages. So far from these numbers, we can predict that Pfizer is meeting its ability to pay short term debt to its creditors and suppliers in the market. As current ratio, the Quick Ratio of Pfizer is also higher than the industry…

    • 1361 Words
    • 6 Pages
    Better Essays
    Read More
  • Powerful Essays

    Analysis of Capital Structure of Ihg
    • 5736 Words
    • 23 Pages

    Analysis of Capital Structure of Ihg

    This report is illustrated about the capital structure of Inter Continental Hotel Group Company. The IHG Company is a large hotel company with a spectacular number of rooms plus owns a portfolio of well recognized and respected famous brands in over the world. During process of the company, they have used several methods of finance to clarify about their financial statement. In this report, the authors explained single statement of finance of this Company which this company has applied. By researching information and literature review, survey questions and analysis, the operation of company is demonstrated and confirmed. Besides that, the author would like to give their recommendation as advices.…

    • 5736 Words
    • 23 Pages
    Powerful Essays
    Read More
  • Good Essays

    Universal Health Service Ratio Analysis
    • 1022 Words
    • 5 Pages

    Universal Health Service Ratio Analysis

    Financial ratios are very important tools that users of the financial statements can utilize to assess an organizations financial health. This paper thoroughly analyzes the performance of the Universal Health Services and assesses the its current financial health. In this regard, key financial ratio will be suggested which can be utilized to assess the Universal Health Services financial condition. Universal Health Services ability to meet both its short as well as long-term financial obligations will be thoroughly evaluated in order to determine how these may influence its future performance. The paper also discusses the Universal Health Services current profitability trends to determine the company’s strategic heading. In conclusion, the…

    • 1022 Words
    • 5 Pages
    Good Essays
    Read More