Simulation Review
Liquidating Ratios: 1. Current Ratio:
Current Assets/ Current Liabilities:
2009: 2008:
128,867/ 23,807 = 5.41:1 130,026/8,380 = 15.52:1 2. Quick Ratio:
Cash and Cash Equivalents + Net Receivables/ Current Liabilities
2009: 2008:
$22,995 + 59,787/ 23,807 = 3.48 $41,851 + 37,666 /8,380 = 9.49
3. Days Cash on Hand:
Unrestricted cash and Cash Equivalents /Cash Operation Expenses ÷ No. of Days in Period (365)
2009: 2008:
Step 1: Step 1:
$462,293 - 36,036 = $426254 $437,424 - 24,955= $412,469
Step 2: Step 2:
$426254/365 = $1168 $412469/365 = 1130
Step 3: Step 3:
$22,995/1,168 = 19.7 days $41,851/ 1130 = 37.04 days
4. Days Receivable:
Net Receivables/ Net Credit Revenues ÷ No. of Days in Period (365)
2009: 2008:
Step 1: Step 1:
$462,982 * 90 =$ 416684 $421,314 * 90 = $379183 Step 2: Step 2: $416,684/ 365 = 1142 $379183/365 = 1039 Step 3: Step 3: 59,787/1142 = 52.35 days 37,666/1039= 36.25 days
5. Solvency Ratio:
Debt Service Coverage Ratio (DSCR) Change in Unrestricted Net Assets (net income) + Interest, Depreciation, Amortization/ Maximum Annual Debt Service
2009: 2008:
$168,611/$14,609=11.54 158,578/$4,195=37.80
6. Liabilities to Fund Balance:
Total Liabilities / Unrestricted Fund Balances 2009: 2008:
$462,153/126,564 = 3.65 $213,450/ 335,035= 0.637
7. Profitability Ratios:
Operating Margin %: Operating Income (loss) / Total Operating Revenues
2009: 2008:
689/462,982 = 0.0015 16110/421314= 0.038
8. Return on Total Assets (%):
EBIT (Earnings before Interest and Taxes)/ Total Assets
2009: 2008:
$128,867/$588,767=21.88 $130,026/$548,535=23.70
What plans the hospital Board should make for next year and the next 5 years?
The hospital
Current Assets/ Current Liabilities:
2009: 2008:
128,867/ 23,807 = 5.41:1 130,026/8,380 = 15.52:1 2. Quick Ratio:
Cash and Cash Equivalents + Net Receivables/ Current Liabilities
2009: 2008:
$22,995 + 59,787/ 23,807 = 3.48 $41,851 + 37,666 /8,380 = 9.49
3. Days Cash on Hand:
Unrestricted cash and Cash Equivalents /Cash Operation Expenses ÷ No. of Days in Period (365)
2009: 2008:
Step 1: Step 1:
$462,293 - 36,036 = $426254 $437,424 - 24,955= $412,469
Step 2: Step 2:
$426254/365 = $1168 $412469/365 = 1130
Step 3: Step 3:
$22,995/1,168 = 19.7 days $41,851/ 1130 = 37.04 days
4. Days Receivable:
Net Receivables/ Net Credit Revenues ÷ No. of Days in Period (365)
2009: 2008:
Step 1: Step 1:
$462,982 * 90 =$ 416684 $421,314 * 90 = $379183 Step 2: Step 2: $416,684/ 365 = 1142 $379183/365 = 1039 Step 3: Step 3: 59,787/1142 = 52.35 days 37,666/1039= 36.25 days
5. Solvency Ratio:
Debt Service Coverage Ratio (DSCR) Change in Unrestricted Net Assets (net income) + Interest, Depreciation, Amortization/ Maximum Annual Debt Service
2009: 2008:
$168,611/$14,609=11.54 158,578/$4,195=37.80
6. Liabilities to Fund Balance:
Total Liabilities / Unrestricted Fund Balances 2009: 2008:
$462,153/126,564 = 3.65 $213,450/ 335,035= 0.637
7. Profitability Ratios:
Operating Margin %: Operating Income (loss) / Total Operating Revenues
2009: 2008:
689/462,982 = 0.0015 16110/421314= 0.038
8. Return on Total Assets (%):
EBIT (Earnings before Interest and Taxes)/ Total Assets
2009: 2008:
$128,867/$588,767=21.88 $130,026/$548,535=23.70
What plans the hospital Board should make for next year and the next 5 years?
The hospital