Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Green Valley Nursing Home, a for-profit, long-term care facility had the following financial performance for 2017 and 2016. Determine and describe the financial strengths

image

Green Valley Nursing Home, a for-profit, long-term care facility had the following financial performance for 2017 and 2016. Determine and describe the financial strengths and weaknesses for Green Valley in terms of liquidity, profitability, debt management, asset management. Liquidity Profitability Debt Management Asset Management Financial ratio Total margin ROA ROE Current ratio Days cash on hand Average collection period Debt ratio Debt to equity ratio Times interest earned Fixed asset turnover ratio Total asset turnover 2017 1.77% 2.3% 16.2% 1.7 12.9 days 24.9 days 85.7% 6 1.4 1.7 1.31 2016 0.9% 1.5% 12.1% 2.5 25 days 18 days 75% 3 2.1 1.2 1.1 Industry Average 3.5% 5.2% 13.1% 2.0 22 days 19 days 71% 2.5 2.6 1.4 1.5 Green Valley Nursing Home, a for-profit, long-term care facility had the following financial performance for 2017 and 2016. Determine and describe the financial strengths and weaknesses for Green Valley in terms of liquidity, profitability, debt management, asset management. Liquidity Profitability Debt Management Asset Management Financial ratio Total margin ROA ROE Current ratio Days cash on hand Average collection period Debt ratio Debt to equity ratio Times interest earned Fixed asset turnover ratio Total asset turnover 2017 1.77% 2.3% 16.2% 1.7 12.9 days 24.9 days 85.7% 6 1.4 1.7 1.31 2016 0.9% 1.5% 12.1% 2.5 25 days 18 days 75% 3 2.1 1.2 1.1 Industry Average 3.5% 5.2% 13.1% 2.0 22 days 19 days 71% 2.5 2.6 1.4 1.5

Step by Step Solution

3.43 Rating (181 Votes )

There are 3 Steps involved in it

Step: 1

Financial Strengths and Weaknesses Analysis for Green Valley Nursing Home 1 Liquidity Strength Green Valleys current ratio has improved from 25 in 201... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

11th Canadian edition Volume 2

1119048540, 978-1119048541

More Books

Students also viewed these Finance questions

Question

Explain all drawbacks of application procedure.

Answered: 1 week ago