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Calculate the net operating income and operating margin for this year and last year using the table information below and discuss what these figures mean
Calculate the net operating income and operating margin for this year and last year using the table information below and discuss what these figures mean for the company (i.e. what story do they tell the reader).
Income statement (in thousands) | this year | last year |
OPERATING REVENUES | ||
Gross Patient Service Revenue | $258, 125 | $263, 469 |
Free Care | 5,800 | 6,024 |
Contractuals | 69, 320 | 67,985 |
Net Patient Service Revenue | 183, 005 | 189, 460 |
other operating revenue | 14, 600 | 14, 843 |
total operating revenue | $197,605 | $204, 303 |
OPERATING EXPENSES | ||
depreciation | 13, 152 | 13, 805 |
interest | 3, 222 | 5, 026 |
bad debt | 5,163 | 6,866 |
other operating expenses | 168, 585 | 173, 634 |
Total operating expenses | $190,122 | $199, 331 |
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