1.Financial Ratio Analysis

Using the data from the attached financial statements for West Texas Regional Hospital (WTRH), calculate the following ratios, then,interpret and briefly explaina trend analysis (compare current to prioryear) and a comparative analysis (compare to industry averages) for each ratio.Be sure to show how you obtained your calculations.

2.Operating Indicator Analysis

Using the following data,calculate the following ratios for West Texas Regional Hospital (WTRH), then, interpret and briefly explain a comparative analysis of each ratio.

*Show all work and compare each ratio with the industry average 1. Financial Ratio Analysis Using the data from the attached financial statements for West Texas Regional Hospital (WTRH), calculate the following ratios, then, interpret and briefly explain a trend analysis (compare current to prior year) and a comparative analysis (compare to industry averages) for each ratio. Be sure to show how you obtained your calculations. Ratios Total margin Operating margin Return on assets Return on equity Current ratio Days cash on hand Debt ratio Times interest earned Fixed asset turnover Total asset turnover Days in patient A/R Average age of plant WTRH 2016 WTRH 2015 Industry Average 5.3 3.6 4.9 8.3 2.0 31.5 41.8 4.0 2.1 0.98 68.0 9.1 2. Operating Indicator Analysis Using the following data, calculate the following ratios for West Texas Regional Hospital (WTRH), then, interpret and briefly explain a comparative analysis of each ratio. Net inpatient revenue Net outpatient revenue Net patient service revenue Inpatient operating expenses Total salaries Total discharges Inpatient days # licensed and staffed beds Average daily census Total FTEs Inpatient FTEs 43,150,750 79,825,000 122,975,750 37,975,000 38,250,000 7,250 41,500 250 166 1,500 525 RATIOS: Ratios Profit per discharge Net price per discharge Outpatient revenue % Occupancy rate Average length of stay Inpatient FTEs per occupied bed Salary per FTE WTRH 2016 Industry average 785 5,750 58.5% 49.2% 4.7 5.6 32,987 INCOME STATEMENT - WEST TEXAS REGIONAL HOSPITAL 2016 Patient service revenue $132,500 Less: Provision for bad debts 8,350 Net patient service revenue $124,150 Premium revenue 6,250 Other revenue 3,900 Total operating revenue $134,300 2015 $128,255 7,500 $120,755 5,220 3,925 $129,900 Nursing services Dietary services General services Administrative services Employee health and welfare Malpractice insurance Depreciation Interest expense Total expenses Operating income Nonoperating income Net income $62,500 5,750 22,500 18,500 10,250 1,350 7,100 1,800 $129,750 $4,550 $3,280 $7,830 $59,750 5,500 22,750 17,225 9,750 1,200 6,650 1,950 $124,775 $5,125 $3,875 $9,000 BALANCE SHEET - WEST TEXAS REGIONAL HOSPITAL 2015 Cash and equivalents $4,285 Short-term investments 4,250 Net patient accts receivable 22,500 Inventories 6,500 Total current assets $37,535 Gross plant and equipment 158,500 Accumulated depreciation 48,775 Net plant and equipment $109,725 Total Assets $147,260 2014 $3,285 4,150 20,730 5,225 $33,390 150,400 41,675 $108,725 $142,115 Accounts payable Accrued expenses Notes payable Total current liabilities Long-term debt Capital lease obligations Total long-term liabilities Net assets (equity) Total liabilities & equity $6,875 6,340 3,675 $16,890 $29,570 2,150 $31,720 $93,505 $142,115 $7,500 5,875 4,200 $17,575 $26,500 1,850 $28,350 $101,335 $147,260 STATEMENT OF CASH FLOWS - WEST TEXAS REGIONAL HOSPITAL 2015 Cash Flows from Operating Activities Operating Income $4,550 Adjustments: Depreciation 7,100 Increase in accounts receivable (1,770) Increase in inventory (1,275) Decrease in accounts payable 625 Increase in accrued expenses (465) Net cash flow from operations $8,765 Cash Flows from Investing Activities Investment in plant and equipment Investment in short-term securities Net cash flow from investing ($8,100) (100) ($8,200) Cash Flows from Financing Activities Nonoperating income Repayment of long-term debt Repayment of notes payable Capital lease principle repayment Net cash flow from financing Net increase(decrease) in cash Beginning cash and equivalents Ending cash and securities $3,280 ($3,070) $525 (300) $435 $1,000 $3,285 $4,285