Ratio analysis. Compare the capital structure ratios for Avon Hospital against industry benchmarks (Exhibit 4.18). Note that during this time period of 20X1, Avon has refinanced its variable rate debt with fixed rate debt.

EXHIBIT 4.18 SELECTED RATIOS FOR AVON HOSPITAL AND THE INDUSTRY BENCHMARKS Industry Avon Hospital Avon Hospital Capital Ratios Benchmark (20X1) (20X0) Debt service coverage 4.00 2.98 3.25 Times interest earned 5.50 4.25 4.55 Net assets to total assets 0.60 0.48 0.55 Longterm debt to net assets 0.50 0.85 0.65

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Reader: Financial Manac X C Get Homework Help With OX Cati Ana Campore The X 3861/epubcfi/6/24[%3Bvnd.vst.idref%3DA004]/4/2/30/16/4/4/22.. to 0 Not syncing a AA BEN ITS operating expense Operating margin Return on total assets. Nonoperating revenue ratio 0.01 Reader: Financial Manac X C Get Homework Help With OX Cati Ana Campore The X 3861/epubcfi/6/24[%3Bvnd.vst.idref%3DA004]/4/2/30/16/4/4/22.. to 0 Not syncing a AA BEN ITS operating expense Operating margin Return on total assets. Nonoperating revenue ratio 0.01