radnor healrhcare system, an 800- bed institution, is located in a highly competitive, urban market area. using the financial ratios from Exhibit 4.22 for the current and previous years, evaluate Radnor's financial ccondition, focusing on revenue, expense, and profitability; liquidity; activity; and capital structure ratios, and compare them to national industry benchmarks for Radnor's bed size, using the data from exhibit 4.16a
Documenti References Mailings Review View Picture Format Tell me A v AaBbcedee AaBbccddee AaBbCcDc ABCDdEx AaBb Normal No Spacing Heading Heading 2 Title EXHIBIT 4.22 SELECTED FINANCIAL RATIOS FOR RADNOR HEALTHCARE SYSTEM Liquidity rates 1.50 04 70 Quick rate Acid test ratio Days in accounts receivable Days cash on hand Average payment period days) Revenue, enpense, and profitability ratios Operating revenue per adjusted discharge Operating expense per adjusted discharge Salary and tenente pense Frontage of total operating e pense Operating margin Norrorting revenue Return on Activity rates Total asset turver at $12.00 511,000 STO, SOD O. 0.99 wa Age of plant Capital structure Facies Long-term debt to equity Equity to total Debt service coverage ratio 0.21 00-3 20299 Bedie 100B P 1. 15 020 20 110 100 50 B 56.766 6.00 57.121 Sot S17 57.399 EXHIBIT 4.160 FINANCIAL RATIOS FOR ALL U.S. HOSPITALS BY BED SIZE Oprum CMS Mediante Hospital industry 100199 Badia Liquidity ratios Current Okrati Acidente 0:30 Days in accounts receivable Days cash on hand 36 1 Average payment period day 50 51 Revenu, wpense and parties Operating revenue per addischarge 57.066 56.40 Operating per discharge 57.197 56494 Salary and be expense as a percentage 404 404 of operating expense Operating margin 0.03 Nanoperating revenue 0.04 DOS Return on assets 0.00 Return on net asset Do Activity to Total Turnover ratio 1.19 1.03 Net xed assets turnover ratio 2.12 21 2.05 Age of plantatie 10.31 1041 10.12 Capital structure rates Long termettant assets ratio 02 0.31 Net assets to total assetti OST Times interest and ratio 3. 3.47 Det service coverage ratio 3.13 351 3.63 Al costane Ab ele Bele 0.0 0.0 017 Abo Abo . 10 BUDO 1.0 2.11 2.04 NO 0.47 . OS 09 0.48 5.13 Abe Abo mm 21 States Focus Radnor Healthcare System, an 800-bed institution, is located in a highly competitive, urban market area. Using the financial ratios from Exhibit 4.22 for the current and previous years, evaluate Radnor's financial condition, focusing on revenue, expense, and profitability; liquidity, activity; and capital structure ratios, and compare them to national industry benchmarks for Radnor's bed size, using the data from Exhibit 4.16a. EXHIBIT 4.22 SELECTED FINANCIAL RATIOS FOR RADNOR HEALTHCARE SYSTEM Ratio 20X1 20XO 2.10 1.85 1.50 0.43 70 155 60 1.55 0.45 55 145 55 Liquidity ratios Current ratio Quick ratio Acid test ratio Days in accounts receivable Days cash on hand Average payment period (days) Revenue, expense, and profitability ratios Operating revenue per adjusted discharge Operating expense per adjusted discharge Salary and benefit expense as a percentage of total operating expense Operating margin Nonoperating revenue Return on assets Activity ratios Total asset turnover ratio Fixed asset turnover ratio Age of plant $12,500 $12,800 5596 $11,000 $10,500 5096 (0.05) 0.06 0.02 0.02 0.07 0.06 1.12 2.55 11.75 0.99 2.35 11.03 Capital structure ratios Long-term debt to equity Equity to total assets Debt service coverage ratio 0.45 0.55 2.85 0.56 0.71 3.05 EXHIBIT 4.16a FINANCIAL RATIOS FOR ALL U.S. HOSPITALS BY BED SIZE $7.11 Optum & CMS Median Ratio 200-299 300-399 Desi Ratio Hospital Industry 1-99 Beds 100-199 Beds Beds Beds 400+ Beds Post Liquidity ratios Current ratio 2.11 2.18 2.04 188 Ouick ratio Abo 1.52 165 1.39 1.27 1.50 Abe Acid test ratio 0:30 035 0.18 0.20 0.20 038 Abo Days in accounts receivable 49 45 Days cash on hand Bel 86 85 81 102 76 119 Abo Average payment period, days 50 45 51 53 52 Bel Revenue, expense, and profitability ratios Operating revenue per adjusted discharge $7,086 56.766 $7517 Abo Operating expense per adjusted discharge $7,197 $6,494 56,112 56,250 $6,819 57,399 Belc Salary and benefit expense as a percentage 40% Bell of operating expense Operating margin 0.02 0.03 0.04 0.04 0.04 Nonoperating revenue 0.04 005 0.03 0.05 0.02 0.17 Var Return on total assets 0.04 0.04 0.04 0.05 Abo Retum on net assets 0.08 0.09 0.10 Abo Activity ratios Total asset tumover ratio 1.07 1.19 1.03 0.99 1.03 1.06 Abo Net foxed assets turnover ratio 2.12 2.17 203 2.11 2.04 221 Abo Age of plant ratio 1031 10:41 10.12 10.9 11.19 Belt Capital structure ratios Long-term debt to net assets ratio 021 018 011 0.42 0.38 Belc Net assets to totale ratio 0.54 0.58 0:51 0.47 0.52 Times interest eamed ratio Abo 3.78 3.47 3.43 5.13 Debt service coverage ratio 3.18 3.51 Abo 3.63 3.50 6.36 Abo Allre values except for quick acident and salary and bent expenses aperomtage of operating expenses were obtained from pum in 2013 Anne protingindo, 2002000 medan val data. The quick, od stand salary and benefit pense as a percentage of operating pemeration were obtained from 200 CMS Comport These are up to a certain point. For example, in general the higher the better for the current ratio, butter a certain point, the organisation might be better off investing some of the 0.00 EXHIBIT 4.16a FINANCIAL RATIOS FOR ALL U.S. HOSPITALS BY BED SIZE Ratio 1.50 Abo Optum & CMS Median Ratio 200-299 300-399 Desli Hospital Industry 1-99 Beds 100-199 Beds Beds Beds 400+ Beds Positi Liquidity ratios Current ratio 2.11 2.18 2.04 1.88 1.71 1.84 Abo Quick ratio 1.52 1.65 1.39 1.27 142 Acid test ratio Abo 0.30 0.35 0.18 0.20 0.20 0.38 Days in accounts receivable 49 47 45 44 48 44 Belc Days cash on hand 86 85 81 102 76 119 Abo Average payment period, days 50 45 51 56 53 52 Belc Revenue, expense, and profitability ratios Operating revenue per adjusted discharge $7,448 $7,086 $6,407 $6,766 $7,121 $7,517 Abo Operating expense per adjusted discharge $7,197 $6,494 $6,112 $6,260 $6,819 $7,399 Belc Salary and benefit expense as a percentage 4096 40% 38% 38% 38% 38% Belc of operating expense Operating margin 0.03 0.02 0.03 0.04 0.04 0.04 Abo Nonoperating revenue 0.04 0.05 0.03 0.05 0.07 0.17 Vari Return on total assets 0.04 0.04 0.04 0.04 0.05 0.05 Abo Return on net assets 0.08 0.09 0.08 0.09 0.10 0.09 Activity ratios Total asset turnover ratio 1.07 1.19 1.03 0.99 1.03 1.06 Abo Net fixed assets turnover ratio 2.12 2.17 2.03 2.11 2.04 2.21 Abo Age of plant ratio 10.31 10.41 10.12 11.97 10.93 11.19 Belc Capital structure ratios Long-term debt to net assets ratio 0.21 0.18 0.31 0.42 0.38 0.59 Belc Net assets to total assets ratio 0.54 0.58 0.51 047 0.52 0.48 Abo Times interest earned ratio 3.78 3.47 3.43 5.13 Abo Debt service coverage ratio 3.18 3.51 3.63 3.50 6.36 4.24 Abo All ratio values, except for quick acid test and salary and benefit expense as a percentage of operating expense ratios were obtained from Optum Insight, 2013 Almanac of Hospital Financ Operating Indicators, 2011/2010 median valur data. The quick and test and salary and benefit expense as a percentage of operating expense ratios were obtained from 2010 CMS cost report These are true up to a certain point. For example, in general the higher the better for the current ratio, but after a certain point, the organisation might be better off investing some of the Abo
