Income Statement

For X hospital corporation during the year 2018, 2019

Item	2018	2019
Net patient service revenues (Sales) Less: cost of nursing, administrative, depreciation and general (COGS)	19,000 18,000	40,000 30,000
Operating income (EBIT) Less: interest expenses (10%)	1,000 100	10,000 1000
Taxable income (EBT) Less: Tax (5%)	900 45	9000 450
Net income	855	8550
Stock Price at the end of 2019 = 6.00 USD

Balance Sheet

For X hospital corporation during the year ended at 31.12.2019

Assets	USD	Liabilities an Equities	USD
Cash	6,000	Account payables	3,000
M. Securities	2,000	Notes Payables	3,000
Net patients receivables	1,000	T. current liabilities	6,000
Inventories	11,000	Long term Debts	60, 000
T. current Assets	20,000	T. Liabilities	66,000
Land and buildings	50,000	Common Stocks (25,000 shares outstanding)	40,000
Machines and equipments	50,000	Retained earnings	14,000
T. Fixed Assets	1000,000	T. owners equity	54,000
T. Assets	120,000	T. Liabilities and equities	120,000

Note in 2019:

Total hospital discharges = 3200 patients

Gross patients revenue = 60000

Gross inpatient revenue = 40000

Formulas:

• Horizontal analysis = (subsequent year previous year/previous year) *100
• Vertical analysis = (line item of interest/base line item) * 100
• Adjusted discharge = (total hospital discharges * gross patients revenue)/ gross inpatient revenue.
• EPS = NI/# of C/S
• Price per share / E.P.S
• B.V/P. S = T.E / # of C/S out standing
• NPM = NI/ Sales (total patients revenue)

Question:

1. We need to discover vertical and horizontal comparison between 2018 and 2019 performance in related to income statement.?
2. Find out all ratio analysis based on the statements discussed below:

Liquidity:

1. How much current liabilities could be covered by current assets, or how much current assets can be handling the short term debt?
2. How much cash as well as M. securities to pay off current liabilities.? Or how much cash on hand or readily available from M. securities to pay off all current liabilities.?
3. How many days in need to collect all hospital patient receivables.?

Profitability:

4. Could you measure the total operating revenues generated from the patient care line of business based on its adjusted inpatient discharge.?
5. Could you measure the total operating expenses resulted from the patient care line of business based on its adjusted inpatient discharge.?
6. Calculate the Operating margin (O.M) as it means the position related to profits earned from the hospitals main line of business.?
7. Calculate the hospital ROE and ROA?
8. Based on previous f and g findings, calculate the net profit margin (NPM).?

Activity:

1. How many times Total Fixed assets turnover during 2019?

10. How many times Total assets turnover during 2019?
11. How many times inventories turnover during 2019?

Capital structure:

12. Can you find the proportion of debt to net assets.?

13. What is the hospital Net assets position based on its total assets.?
14. How many times operating income can pay its interests expenses.?

Extra:

As we know shares market is important:

• Calculate the earnings per share (EPS).? Where EPS = NI /# of common stocks )
• Find the price/earnings (P/E).?, where P/E = price per share/EPS.
• Market value/book value per share (MV/BVPS).?, where (B.V/P. S = T.E / # of C/S out standing.