Assessment 4 Case Study of Financial Analysis and Operating Ratios Submit Files Hide Submission Folder Information Submission Folder Assessment 4 Case Study of Financial Analysis and Operating Ratios Instructions Assessment 4 Case Study of FinancialAnalysis and Operating Ratios(15 ) In this assessment you will use the income statement and balance sheet information identified below and evaluate the firm'sfinancial condition based on three profitability ratios a) Total Margin, b) Return on Assets and c) Return on Equity You will be gradedbased on your description,understanding of the3 ratios and description of at least 3 nonfinancial indicators Grading will also reflectthe accuracy of your calculations, the validity of your conclusions and your ability to clearly communicate your analysis To complete this assignment, follow these steps Review the reading requirements and powerpoint summary for Week 6 Financial Ratios and non Financial ratios Examine the Income Statement and Balance Sheet provided in the excel file under Week 6 content This data should be used for this assignment (attached below)The data also includes industry benchmarks for comparison From this financial information calculate the three profitability ratios a) Total Margin, b) Return on Assets and c) Return on equity For each ratio, in a paragraph define the ratio, explain what it measures, show your calculation and explain what the ratio tells you about your organization s health and any limitations of using the ratio Write a conclusion about your organization s financial condition based on your ratio analysis Describe and discuss the use of non financial operating indicators in additional to financial ratios in measuring financial performance Help4U HMO Income Statement and Change in Net Assets Year Ended June 30, 2015 (in thousands) Revenue Premiums Earned Co Insurance Interest and Other Income Total Revenue $26,682 1,689 242 $28,613 Expenses Salaries and Benefits Medical Supplies and Drugs Insurance Provision for Bad Debt Depreciation Interest Total Expenses $15,154 7,507 3,963 19 367 385 $27,395 Net Income $1,218 Net Assets, Beginning of Year Net Assets, End of Year $900 $2,118 Help4U HMO Balance Sheet June 30, 2015 (in thousands) Assets Cash and Cash Equivalents Net Premiums Receivable Supplies Total Current Assets $2,737 821 387 $3,945 Net Property and Equipment Total Assets $5,924 $9,869 Liabilities and Net Assets Accounts Payable Medical Services Accrued Expenses Notes Payable Current Portion of Long Term Debt Total Current Liabilities $2,145 $929 $141 $241 $3,456 Long Term Debt Total Liabilities $4,295 $7,751 Net Assets (Equity) Total Liabilities and Net Assets $2,118 $9,869 Industry Benchmarks Total Margin Return on Equity Return on Assets 3 80 25 50 8 00

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Assessment #4: Case Study of Financial Analysis and Operating Ratios - Submit Files Hide Submission Folder Information Submission Folder Assessment #4: Case Study of Financial

Assessment #4: Case Study of Financial Analysis and Operating Ratios - Submit Files

Hide Submission Folder Information

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Assessment #4: Case Study of Financial Analysis and Operating Ratios

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Assessment #4: Case Study of FinancialAnalysis and Operating Ratios(15%)

In this assessment you will use the income statement and balance sheet information identified below and evaluate the firm'sfinancial condition based on three profitability ratios: a) Total Margin, b) Return on Assets and c) Return on Equity.You will be gradedbased on your description,understanding of the3 ratios and description of at least 3 nonfinancial indicators. Grading will also reflectthe accuracy of your calculations, the validity of your conclusions and your ability to clearly communicate your analysis. To complete this assignment, follow these steps.

Review the reading requirements and powerpoint summary for Week 6 Financial Ratios and non-Financial ratios.
Examine theIncome Statement and Balance Sheet provided in the excel file under Week 6 content. This data should be used for this assignment. (attached below)The data also includes industry benchmarks for comparison.
From this financial information calculate the three profitability ratios: a) Total Margin, b) Return on Assets and c) Return on equity.
For each ratio, in a paragraph: define the ratio, explain what it measures, show your calculation and explain what the ratio tells you about your organization?s health and any limitations of using the ratio.
Write a conclusion about your organization?s financial condition based on your ratio analysis.
Describe and discuss the use of non-financial operating indicators in additional to financial ratios in measuring financial performance.

Help4U HMO Income Statement and Change in Net Assets Year Ended June 30, 2015 (in thousands) Revenue: Premiums Earned Co-Insurance Interest and Other Income Total Revenue $26,682 1,689 242 $28,613 Expenses: Salaries and Benefits Medical Supplies and Drugs Insurance Provision for Bad Debt Depreciation Interest Total Expenses $15,154 7,507 3,963 19 367 385 $27,395 Net Income $1,218 Net Assets, Beginning of Year Net Assets, End of Year $900 $2,118 Help4U HMO Balance Sheet June 30, 2015 (in thousands) Assets Cash and Cash Equivalents Net Premiums Receivable Supplies Total Current Assets $2,737 821 387 $3,945 Net Property and Equipment Total Assets $5,924 $9,869 Liabilities and Net Assets Accounts Payable Medical Services Accrued Expenses Notes Payable Current Portion of Long-Term Debt Total Current Liabilities $2,145 $929 $141 $241 $3,456 Long-Term Debt Total Liabilities $4,295 $7,751 Net Assets (Equity) Total Liabilities and Net Assets $2,118 $9,869 Industry Benchmarks Total Margin Return on Equity Return on Assets 3.80% 25.50% 8.00%