Question
Exhibit 1 shows the statement of operations and balance sheet for Louisville Community Hospital for the years ended 20x0 and 20x1. Compute the following ratios
Exhibit 1 shows the statement of operations and balance sheet for Louisville Community Hospital for the years ended 20x0 and 20x1.
Compute the following ratios for both years: quick, current, acid test, days in accounts receivable, days cash on hand, average payment period, operating revenue per adjusted discharge operating expense per adjusted discharge, salary and benefit expense as a percentage of total operating expense, operating margin, non-operating revenue, return on total assets and net assets, total asset turnover, fixed asset turnover, age of plant, long term debt to net assets, and net assets to total assets.
Comment on the hospitals liquidity; efficient use of assets; expense; profitability; and capital expense citing at least one ratio per category. Use the national hospital industry benchmarks listed in exhibit 3 for 125 bed hospitals and assume that Louisvilles discharges were 3,100 for 20x0 and 3,300 for 20x1.
If you were CEO of Louisville Hospital, what actions would you take as a result of your analysis?
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