Find the ratio 20X7

Table 11-5 Summary Financial Information Community Hospital* 20X320X7 (data in thousands)

20X3 20X4 20X5 20X6 20X7

Balance sheet accounts

Cash and cash equivalents

$34,402

$30,444

$45,848

$46,010

$73,711

Patient accounts receivable

39,506

38,878

35,444

38,853

35,647

Inventory

2,133

2,318

2,398

3,197

3,279

Gross fixed assets

187,278

221,548

240,988

256,652

276,458

Accumulated depreciation

73,227

79,523

89,324

101,007

113,851

Net fixed assets

114,051

142,025

151,664

155,645

162,607

Unrestricted capital funds

10,720

13,625

20,160

25,615

17,716

Total assets

$238,365

$265,784

$276,965

$287,193

$311,140

Current maturities of LTD

111

1,794

1,431

2,211

1,143

Current liabilities

$37,426

$38,492

$33,240

$31,699

$35,862

Long-term debt

2,032

12,821

11,720

9,578

9,570

Net assets

$188,743

$204,262

$222,606

$237,022

$251,241

Income Statement Accounts

Net patient revenue

$208,861

$225,950

$244,976

$257,784

$282,461

Other revenue

1,569

1,756

1,929

2,170

1,757

Total operating revenue

$210,430

$227,706

$246,905

$259,954

$284,218

Total operating expenses

$203,043

$219,768

$233,867

$254,382

$278,629

Operating income

7,387

7,938

13,038

5,572

5,589

plus Nonoperating revenue

6,806

7,579

8,971

8,430

8,696

Excess of revenue over expenses

$14,193

$15,517

$22,009

$14,002

$14,285

Depreciation

$10,588

$11,161

$11,659

$12,184

$12,524

Interest

115

611

471

419

392

* Note that not all asset and liability items are shown. The totals do not, therefore, foot to the individual account values.

(Cleverley 281-282)

Cleverley, William O. Essentials of Health Care Finance, 8th Edition. Jones & Bartlett Learning, 20170215. VitalBook file.

TABLE 11-6 Selected Financial Ratios

20X3 20X4 20X5 20X6 20X7

Overall

ROE %

7.5

7.6

9.9

5.9

5.7

Total margin %

6.5

6.6

8.6

5.2

4.9

Financial strength index

2.2

1.9

3.1

2.2

2.3

Nonoperating Income

Days cash on hand

86

77

108

108

125

Investment Efficiency

Days in accounts receivable

69

63

53

55

46

Revenue to net fixed assets

1.9

1.7

1.7

1.7

1.8

Plant Obsolescence

Average age of plant

6.9

7.1

7.7

8.3

9.1

Capital Position

Debt financing %

20.8

23.1

19.6

17.5

19.3

Cash flow to debt %

49.9

43.4

61.9

52.2

44.8 (Cleverley 282-284)

Cleverley, William O. Essentials of Health Care Finance, 8th Edition. Jones & Bartlett Learning, 20170215. VitalBook file.