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Given the following calculations for Net days in Accounts Receivable, would you conclude that MGH's revenue cycle management is efficient? If Yes, why? If No,
Given the following calculations for Net days in Accounts Receivable, would you conclude that MGH's revenue cycle management is efficient? If Yes, why? If No, why?
Net days in Accounts Receivable = 45 days Debt ratio = 28.95 or 29%
Peer-group average = 42.3%
TIE = EBIT/Interest expense
TIE = 1.2 times Peer-group average = 4.0 times
Debt-to-capitalization ratio Debt-to-capitalization ratio =15.9
Peer-group average = 34.6%
Debt-to-equity ratio
Debt-to-equity ratio =40.8
Peer-group average = 73.5%
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