INCOME STATEMENT - WEST TEXAS REGIONAL HOSPITAL RATIOS WTRH 2017 WTRH 2016 Industry Averages PROFITABILITY Total Margin 5.2% 5.3% Patient service revenue Less: Provision for bad debts Net patient service revenue Premium revenue Other revenue Total operating revenue 2017 $164,500 10,500 $154,000 7,250 4,850 $166,100 Ratio Analysis Trend Analysis Comparative Analysis Operating Margin 3.5% 3.6% Ratio Analysis Trend Analysis Comparative Analysis ROA (return on assets) 4.9% 4.9% Ratio Analysis Trend Analysis Comparative Analysis Nursing services Dietary services General services Administrative services Employee health and welfare Malpractice insurance Depreciation Interest expense Total expenses Operating income Nonoperating income Net income $78,550 7,825 27,950 22,125 12,500 1,675 9,750 3.125 $163,500 $2,600 $4,825 $7,425 ROE (return on equity) 7.4% 8.3% Ratio Analysis Trend Analysis Comparative Analysis LIQUIDITY RATIOS Current Ratio 2.0 2.0 Ratio Analysis Trend Analysis Comparative Analysis Days Cash on Hand 22.6 31.5 BALANCE SHEET - WEST TEXAS REGIONAL HOSPITAL 2017 Cash and equivalents $5,820 Short-term investments 5,275 Net patient accts receivable 29,650 Inventories 8,125 Total current assets $48,870 Gross plant and equipment 185,125 Accumulated depreciation 59,750 Net plant and equipment $125,375 Total Assets $174,245 Ratio Analysis Trend Analysis Comparative Analysis Debt Ratio 34.2% 41.8% Ratio Analysis Trend Analysis Comparative Analysis Times Interest Earned 4.6 4.0 Ratio Analysis Trend Analysis Comparative Analysis ASSET MANAGEMENT RATIOS Accounts payable Accrued expenses Notes payable Total current liabilities Long-term debt Capital lease obligations Total long-term liabilities Net assets (equity) Total liabilities & equity $9,375 6,855 5,250 $21,480 $33,125 1.925 $35,050 $117,715 $174,245 Fixed Asset Turnover 1.2 2.1 Ratio Analysis Trend Analysis Comparative Analysis Total Asset Turnover 0.9 0.8 Ratio Analysis Trend Analysis Comparative Analysis Days in Patient AR 62.0 68.0 Ratio Analysis Trend Analysis Comparative Analysis Average Age of Plant 5.6 9.1 Ratio Analysis Trend Analysis Comparative Analysis Instructions: Using the Income Statement and Balance Sheet below, calculate each of the ratios below in the yellow cell. Use formulas to show your work