Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Beyond the numbers: review the brief narrative below. Based on your financial analysis you have completed, how do you feel the financial position of the

Beyond the numbers: review the brief narrative below. Based on your financial analysis you have completed, how do you feel the financial position of the organization will affect the strategic decisions of the organization? What recommendations would you have for the organization? For the written summary provide a paragraph, or two, discussing how the financial status of the organization impacts the strategic direction of the organization.Finally, provide a conclusion tying everything together in your financial analysis and beyond the numbers discussion
Beyond the numbers: Louisville Community Hospital.
Louisville Community Hospital (LCH) is medium sized, 125 bed hospital in a competitive greater metropolitan area of Louisville, Kentucky. Of particular interest to the Board of Trustees of LCH are the liquidity ratios. A large philanthropic donation was received by LCH in 2011. How would this donation affect the liquidity ratios?
The Board of Trustees and upper management also want to be made aware of the expense structure of the hospital. Spend some time reviewing the operating expenses of the hospital. Pick two you find vital and perform two horizontal analysis calculations. Staffing has increased at the hospital over the last few years, due to the hospitals forecasted strategic position of potentially increasing patient volumes across various service lines. How you formally communicate financial consultation to the Board about salary and wages expense?
Finally, from an investment planning standpoint, the hospital has invested discretionary funds in new investments as a part of their investment portfolio, as well as new fixed assets. Provide an assessment of this strategy on the financial position of the hospital for both items. Does it have an effect on your overall analysis?financial analysis complete:
Liquidty:
Current ratio in 2021 is 1.66 and 2020 is 1.73 the benchmark is 1.77
Days in A/R in 2021 is 63 and 2020 is 67 and the benchmark is 43
Average payment period is 61.44 and 2020 is 66.47 and the benchmark is 65
Profitability:
Operating revenue per adjusted discharge in 2021 is $7.27 and 2020 is 6.39 and the benchmark is $
Operating expense per adjusted discharge in 2021 is $6.88 and in 2020 is 6.39
Salary and benefit as and of operating exp in 2021 is 57% and in 2020 is 53%
Operating margin in 2021 is 0.05 and 2020 is 0.14
non-operating revenue in 2021 is 0.17 and 2020 is 0.13
Return on total assests in 2021 is 0.16 and 2020 is 0.25
Activity :
Total asset turnover in 2021 is 0.75 and 2020 is 0.95
Net fixed asset turnover in 2021 is 2.82 and 2020 is 2.83
Age of plant in 2021 is 7.20 and 2020 is 8.50
Capital structure :
Long-term debt to net assets in 2021 is 0.29 and 2020 is 0.80
net assets to total assets in 2021 is 0.69 and 2020 is 0.48. I need to answer by tonight!!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Executives And MBAs

Authors: Wallace, Simko, Ferris

4th Edition

1618531980, 9781618531988

Students also viewed these Finance questions