Ratio	Optum & CMS Median Ratio Hospital Industry	1-99 beds	100-199 beds	200-299 beds	300-399 beds	400+ beds	Desired position
Liquidity Ratios
Current ratio	2.11	2.18	2.04	1.88	1.71	1.84	Above
Quick ratio	1.52	1.65	1.39	1.27	1.42	1.50	Above
Acid test ratio	0.30	0.35	0.18	0.20	0.20	0.38	Above
Days in account rec.	49	47	45	44	48	44	Below
Days cash on hand	86	85	81	102	76	119	Above
Average pmt period, days	50	45	51	56	53	52	Below
Revenue, expense, and profitability ratios
Operating revenue per adjusted	$7,448	$7,086	$6,407	$6,766	$7,121	$7,517	Above
Operating expense per adjusted	$7,197	$6,494	$6,112	$6,260	$6,819	$7,399	Below
Salary and benefit expense as a percentage of operating expense	40%	40%	38%	38%	38%	38%	Below
Operating Margin	0.03	0.02	0.03	0.04	0.04	0.04	Above
Nonoperating revenue	0.04	0.05	0.03	0.05	0.07	0.17	Varies
Return on total assets	0.04	0.04	0.04	0.04	0.05	0.05	Above
Return on nets assets	0.08	0.08	0.08	0.09	0.10	0.09	Above
Activity ratios
Total asset turnover ratio	1.07	1.19	1.03	0.99	1.03	1.06	Above
Net assets turnover ratio	2.12	2.17	2.03	2.11	2.04	2.21	Above
Age of plant ratio	10.31	10.41	10.12	11.97	10.93	11.19	Below
Capital structure ratios
Long-term debt to net assets ratio	0.21	0.18	0.31	0.42	0.38	0.59	Below
Net assets to total assets ratio	0.54	0.58	0.51	0.47	0.52	0.48	Above
Times interest earned ratio	3.78	3.47	3.43	3.64	4.43	5.13	Above
Debt service coverage ratio	3.18	3.51	3.63	3.50	6.36	4.24	Above

15. Exhibit 4.21 lists the financial ratios for 189-bed Collingswood Community Hospital. Assess the revenue, expenses, and profitability, liquidity, activity and capital structure of Collingwood for 20x1. Explain why these financial measures changed between 20x0 and 20x1, and compare them to national industry benchmarks for Collingwoods bed size, using data from Exhibit 4.16a.

Ratio	20X1	20X0
Liquidity ratios
Current ratio	3.05	2.01
Acid test ratio	0.65	0.35
Days in accounts receivable	48	60
Days cash on hand	215	120
Average payment period, days	62	48
Revenues, Expense, & Profitability ratios
Operating revenue per adjusted	0.02	0.01
Operating expense per adjusted	0.35	0.05
Salaries and benefit expense as a percentage of total operating expense	0.15	0.04
Operating margin	0.04	0.08
Nonoperating revenue	0.15	0.04
Return on net assets	0.13	0.04
Activity ratios
Total asset turnover ratio	0.90	1.20
Fixed asset turnover ratio	2.20	2.75
Age of plant	8.45	11.15
Capital structure ratios
Debt service coverage ratio Long-term debt to net assets	2.75	4.00
Long-term debt to net assets	1.40	0.55
Net assets to total assets	0.42	0.65