Please show your formulas/work Case Study: Ratio Analysis Case Study Instructions: A. Navigate to the SECs Electronic Gathering, Data Analysis, and Retrieval (EDGAR) database, located at https://www.sec.gov/edgar/searchedgar/companysearch.html Look up the following filings: 1. Tenet (THC) 10-K for the FY ended December 31, 2022 2. Health Care Corporation (HCA) - 10-K ended December 31, 2022 - Look for 10-k under filings and make sure you pick the right filing date as mentioned above.

These 10- Ks were both filed in February of 2023 with the SEC. - HCA on February 17, 2023 and THC on February 21, 2023. - Before starting read the article on How to read a 10-K/10-Q. It is presented on the home page of each of the public companies. Use the table of contents in each 10-K to navigate to Item 8, which contains the financial statements. You can also click interactive data and View Excel Document. This will download the excel file for financial statements. Once downloaded, Use cell referencing to compute the ratios in excel.

B. Apply the concepts from Modules to date and Chapter 17 and Chapter Supplement to calculate the following ratios for each company. Do not google ratio definitions Use only the book definitions or those presented below: (Hint: In order to find some inputs, you may need to reference the statement of cash flows) Liquidity/Asset Management

1) Current ratio

2) Days cash on hand

3) Accounts Receivable Turnover (Net Sales/ Average Net AR)

4) Days in Patient Accounts Receivable

5) Average Age of Plant

6) Fixed Asset Turnover

7) Total Asset Turnover Solvency

8) Debt ratio (Debt/Total Assets)

9) Equity ratio (Equity/Total Assets)

10) Debt to Capitalization Ratio

11) Cash Flow Coverage Ratio

12) Time Interest Earned Profitability

13) Operating Margin

14) Total/Profit Margin

15) Return on Assets

16) Return on Equity Market prospects

17) Price to Earnings

18) Earnings per Share Important Definitions: Days Cash on Hand Cash & Equivalents + Short Term Investments/(Operating expenses less non-cash items- (depreciation expense and amortization) /365) Earnings Per Share Total Earnings/ Shares Outstanding only use the basic shares outstanding from the income statement Times Interest Earned Income before interest and tax/ interest expense make sure the non-operating income or expense is subtracted or added before computing the numerator for income before interest in taxes

C. Compare the ratios of the two companies and comment on their financial strength in a brief memo. Please label and use your last name in both documents to submit. Your submission should include the following: 1. Short (one paragraph is fine) Summary memo in proper format on the results along with the Submission sheet with the ratios (see below) 2. Excel support of all the ratios and the computations using formulas

As of: 12/31/2022 12/31/2022 Company Name Tenet HCA Net Income Total Assets Current Ratio Days Cash on Hand Accounts Receivable Turnover Days in Patient AR Average Age of Plant Fixed Asset Turnover Total Asset Turnover Debt Ratio Equity Ratio Debt to Capitalization Ratio Cash Flow coverage Time Interest Earned Operating Margin Profit/Total Margin Return on Assets Return on Equity Price to Earnings Earnings per Share Annotations

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