Listed below are the financial ratios for Calvin Community Clinic. Calvin improved its overall financial condition from 2008 to 2009. Identify these areas of improvement and attempt to explain how this improvement came about.

Calvin Community Clinic Financial Ratios

2009 2008

Current ratio 2.20 2.10

Acid test ratio 0.25 0.10

Days in accts receivable 45 days 60 days

Average payment period 43 days 45 days

Days cash on hand 15 days 5 days

Fixed asset turnover 3.58 2.54

Total asset turnover 1.10 1.04

Operating margin 0.10 0.03

Return on total assets 0.20 0.12

Long-term debt to net assets 1.10 2.18

Net assets to total asset 1 0

Debt service coverage 3.20 2.10

Age of plant 5.70 3.50