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4. Using the information presented in the Financial Statements of United Health Care, a major HMO, compute financial ratios for 1994 and 1995 and discuss
4. Using the information presented in the Financial Statements of United Health Care, a major HMO, compute financial ratios for 1994 and 1995 and discuss some of the primary observations that you would conclude regarding the financial performance of the firm. Provide an overall evaluation of the financial position of this company United Healthcare Financial Ratios Health Plan Median 2017 2016 2015 Liquidity Current 1.32?.93 Days in Receivables 22.5? 19.8 Days Cash on Hand 89.9?? 53.6 Capital Structure Equity Financing % 48.9 ? ? 60.7% Long Term Debt to Equity % 13.0 ? ? 3.67% Cash Flow to Total Debt % 15.0 ? ? 37.7% Times Interest Earned 13.1 109.5 Aativity Total Asset Turnover 155 1.74 Fixed Asset Turnover 16.8?? 24.6 Current Asset Turnover 2.88?? 5.07 Profitability Total Margin % 3.6 ? ? 6.81 Return on Equity % 11.6 ? ? 19.6
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