Ratio Analysis. The balance sheet and statement of operations for Dogwood Community Hospital for the years ended
Question:
Ratio Analysis. The balance sheet and statement of operations for Dogwood Community Hospital for the years ended 20X0 and 20X1 are shown in Exhibits 4–19a and 4–19b. Compute the following ratios for both years: current, acid test, days in accounts receivable, average payment period, long-term debt to net assets, net assets to total assets, total asset turnover, fixed asset turnover, return on total assets, and operating margin. After calculating the ratios, comment on Dogwood’s liquidity, efficient use of assets or activity ratios, profitability, and capital structure relative to its standards for its respective bed size listed in Exhibit 4–16a. Cite at least two meaningful ratios per category. Assume Dogwood is a 125-bed facility for the analysis. How might the opinion of Dogwood change if it were a 450-bed facility?
Step by Step Answer:
Financial Management Of Health Care Organizations
ISBN: 9780631230984
2nd Edition
Authors: William N. Zelman, Michael J. McCue, Alan R. Millikan, Noah D. Glick