Question
The chief executive officer (CFO) of the company wants to generate cash for the organization and has tasked you to review the current stockholders' equity
The chief executive officer (CFO) of the company wants to generate cash for the organization and has tasked you to review the current stockholders' equity position for the company and use your findings to recommend strategies for generating cash flow. The CEO has requested you summarize your findings in a memo that is addressed to the CFO, but one that could be shared with other stakeholders.
BJC HealthCare's total revenue increased last year, but the St. Louis-based system ended 2018 with lower operating income than the year prior.
BJC recorded revenues of $5.3 billion in 2018, up from $5 billion in 2017, according to audited financial documents. The increase was largely attributable to higher net patient service revenue, which climbed 11 percent year over year.
Despite the year-over-year revenue growth, BJC saw its operating income decrease in 2018 after factoring in expenses. The system's expenses totaled $5.3 billion last year, up from $4.8 billion in 2017.
BJC's operating income fell to $59.4 million in 2018, a 61 percent decrease from $154.3 million 2017.
After factoring in a significant decline in investment income, BJC ended 2018 with net income of $105.9 million, down from $431.3 million in the year prior.
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