Ratio Analysis. Exhibits 420a and 420b show the statement of operations and balance sheet for Maryville Community

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Ratio Analysis. Exhibits 4–20a and 4–20b show the statement of operations and balance sheet for Maryville Community Hospital for the years ended 20X0 and 20X1. Compute the following ratios for both years: current, quick, acid tests, days in accounts receivable, days cash on hand, average payment period, operating margin, non-operating revenue, return on total assets and net assets, total asset turnover, fixed asset turnover, age of plant, long-term debt to net assets, and net assets to total assets. Comment on Maryville’s liquidity, efficient use of assets, profitability, and capital structure, citing at least one ratio per category. Use the national hospital industry standards listed in Exhibit 4–16a for 250 beds, and then perform an analysis if hospital size were unknown.

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Financial Management Of Health Care Organizations

ISBN: 9780631230984

2nd Edition

Authors: William N. Zelman, Michael J. McCue, Alan R. Millikan, Noah D. Glick

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