13.4 Consider the following financial statements for BestCare, a not-for-profit health insurer. BestCare Health Insurer Statement of Operations, Year Ended June 30, 2016 in Thousands) Revenue Healthcare premiums $26,682 Fees and other revenue 1,689 Net investment income 242 Total revenues $28,613 Benefits and expenses Healthcare costs $ 15,154 Operating expenses Selling expenses 3,963 General and administrative expenses Interest expense 385 Total expenses $27,395 Net income $ 1,218 7,893 b. Calculate and interpret the following ratios for BestCare. Sector Average 8.0% Return on assets Current ratio DCOH (assume depreciation expense is $367) Average collection period Debt ratio Debt-to-equity ratio 1.3 41 days 7 days 69% 2.2 Times interest earned ratio 2.8 Fixed-asset turnover ratio 18.5 3.8% 2.1 Total margin Total asset turnover Equity multiplier Return on equity 3.2 25.5% 13.4 Consider the following financial statements for BestCare, a not-for-profit health insurer. BestCare Health Insurer Statement of Operations, Year Ended June 30, 2016 in Thousands) Revenue Healthcare premiums $26,682 Fees and other revenue 1,689 Net investment income 242 Total revenues $28,613 Benefits and expenses Healthcare costs $ 15,154 Operating expenses Selling expenses 3,963 General and administrative expenses Interest expense 385 Total expenses $27,395 Net income $ 1,218 7,893 b. Calculate and interpret the following ratios for BestCare. Sector Average 8.0% Return on assets Current ratio DCOH (assume depreciation expense is $367) Average collection period Debt ratio Debt-to-equity ratio 1.3 41 days 7 days 69% 2.2 Times interest earned ratio 2.8 Fixed-asset turnover ratio 18.5 3.8% 2.1 Total margin Total asset turnover Equity multiplier Return on equity 3.2 25.5%