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Choose three ratio categories and in two to three sentences for each category, explain how Northside Hospitals performance compares to its industry. A. Ratio comparison
Choose three ratio categories and in two to three sentences for each category, explain how Northside Hospitals performance compares to its industry.
A. Ratio comparison 1:
B. Ratio comparison 2:
C. Ratio comparison 3:
RATIOS 2015 2016 2017 1) Liquidity Ratio: a) Current Ratio: Industry Northside Hospital 1.68 1.63 3.33 2.00 2.22 1.76 b) Quick Ratio: Industry Northside Hospital 0.84 0.77 1.15 1.00 1.30 0.88 c) Average Payment Period: Industry Northside Hospital 27.4 62.6 days 28.1 63.3 30.2 63.3 2) Asset Management Ratios a) Total Assets Turnover: Industry Northside Hospital 2.50 1.53 2.50 1.50 2.50 1.40 b) Fixed Asset Turnover: Industry Northside Hospital 3.33 3.60 6.45 4.00 7.33 3.50 c) Average Collection Period: Industry Northside Hospital days 24.33 37.85 32.85 48.67 36.50 52.14 times d) Inventory Turnover Ratio: Industry Northside Hospital 7.50 4.23 8.13 3.75 7.00 3.60 3) Financial Leverage Ratios a) Total Debt to Total Assets: Industry Northside Hospital 30.6%% 46.6% 30.0% 50.0% 31.8% 56.4% b) Equity Multiplier: Industry Northside Hospital 1.44 1.87 1.43 2.00 1.47 2.29 c) Interest Coverage: Industry Northside Hospital 4.57 6.71 6.33 6.00 8.33 5.29 d) Fixed Charge Coverage: Industry Northside Hospital 4.57 6.71 6.33 6.00 8.33 5.29 4) Profitability Ratio a) Operating Profit Margin: Industry Northside Hospital 7.11% 8.70% 9.50% 10.00% 11.36% 10.57% b) Net Profit Margin: Industry Northside Hospital 3.33% 4.44% 4.80% 5.00% 6.00% 5.14% c) Operating Return on Assets: Industry Northside Hospital 17.7% 13.4% 23.8% 15.0% 28.4% 14.8% d) Return on Total Assets: Industry Northside Hospital 8.3% 6.8% 12.0% 7.5% 15.0% 7.2% e) Return on Equity Industry Northside Hospital 12.0% 12.8% 17.1% 15.0% 22.0% 16.5%Step by Step Solution
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