Initial Post

Directions

The student, functioning as Director of Finance Department for a private large hospital operator $($Hospital Corporation of America $($HCA$),$ that went private, for the $3$rd time, in $2006$ with a transaction value of $$33$ billion, paid payouts of $$4\mathrm{.}5$ billion to buyout firms, which financed the $2006$ going private transaction, conducted asset writedowns and large dividend payments; and then went public again in $2011)$ was approached by Mr$.$ Bell, the Chief Financial Officer, whereby he expressed some concerns over worsened significantly short$-$term liquidity, which appeared to also be less than industry. Mr$.$ Bell requested you to conduct an assessment of present financial position $($as of December $31$ of $2011)$ in preparation for the development of a financial plan. Taking into consideration the concerns expressed by Mr$.$ Bell and based on information presented in Case $4\mathrm{.}2$ Hospital Corporation of America, information obtained from credible outside sources, and your professional experience, prepare a memorandum on financial position of the Hospital Corporation of America at the end of $2011,$ include the key financial ratios, such as long$-$term debt to assets, total profit margin, asset turnover ratio, return$-$on assets, and others; discuss liquidity, capital structure, and profitability; and provide specific recommendations on the desired levels of investment for HCA, debt policy, and the reasonableness of required equity growth for financial planning. Be sure take into consideration the questions listed in Case $4\mathrm{.}2$ Hospital Corporation of America $($pp$.92-93)$ when preparing your statement.