United Health Care Financial Ratios

Industry Average

$2004$

$2003$

Current Ratio

Average Collection Period

Days Cash on Hand

Debt Ratio

Equity Multiplier

Times Interest Earned

Total Asset Tumover

Fixed Asset Turnover

Total Margin

Retum on Equity

$1\mathrm{.}32$

$22\mathrm{.}5$

$89\mathrm{.}9$

$48\mathrm{.}9$

$2\mathrm{.}08$

$13\mathrm{.}1$

$1\mathrm{.}55$

$16\mathrm{.}8$

$3\mathrm{.}6$

$11\mathrm{.}6$

$\backslash$table$[[2\mathrm{.}87,0\mathrm{.}93]]$

$\backslash$table$[[16\mathrm{.}2,19\mathrm{.}8,],[188\mathrm{.}5,5\mathrm{.}6]]$

$188\mathrm{.}5,53\mathrm{.}6$

$\backslash$table$[[19\mathrm{.}9,39\mathrm{.}3]]$

$\backslash$table$[[1\mathrm{.}25,1\mathrm{.}65],[21\mathrm{.}63,10\mathrm{.}95]]$

$21\mathrm{.}63,10\mathrm{.}95$

$1\mathrm{.}07,1\mathrm{.}74$

$22\mathrm{.}9,24\mathrm{.}6$

$4\mathrm{.}46,6\mathrm{.}81$

$5\mathrm{.}96,19\mathrm{.}6$

Choose your answers from the following statements:

A$.$ Each dollar of total assets can finance $1\mathrm{.}07$ dollars of total revenue.

B$.$ Compare to industry average, UHC used net income more efficiently to generate equity in $2004.$

C$.$ Each dollar of total assets can generate $19\mathrm{.}9$ cents of total liabilities.

D$.$ Compare to $2003,$ UHC did not control expenses well in $2004.$

E$.$ For each dollar of current assets, we have $2\mathrm{.}87$ dollars current liabilities to pay for it$.$

F$.$ One dollar of net income can generate $4\mathrm{.}46$ dollars of total revenue.

G$.$ Compare to $2003,$ UHC was more efficient in managing receivables in $2004.$

H$.$ Each dollar of total liabilities can generate $19\mathrm{.}9$ cents of total assets.

I One dollar of total revenue can generate $4\mathrm{.}46$ cents of net income.

J$.$ Compare to industry average, UHC used expenses less efficiently in generating cash in $2003.$

K$.$ Each dollar of current liabilities can generate $2\mathrm{.}87$ dollars of current assets.

L$.$ Compare to industry average, UHC used equity less efficiently to generate net income in $2004.$

M$.$ Each dollar of total assets can generate $1\mathrm{.}07$ dollars of total revenue.

N$.$ One dollar of total revenue can generate $4\mathrm{.}46$ dollars of net income.

O$.$ Each dollar of total liabilities was financed through $19\mathrm{.}9$ cents of total assets.

P$.$ Compare to $2004,$ UHC used expenses more efficiently in generating cash in $2003.$

Q$.$ Each dollar of current assets can generate $2\mathrm{.}87$ dollars of current liabilities.

R$.$ Compare to $2003,$ UHC used total revenue more efficiently in generating net income in $2004.$

S$.$ Each dollar of total revenue can generate $1\mathrm{.}07$ dollars of total assets.

T$.$ Compare to industry average, UHC used net patient service revenue less efficiently in generating net patient accounts receivable in $2003.$

U$.$ Each dollar of total assets was financed through $19\mathrm{.}9$ cents of total liabilities.

V$.$ Compare to $2004,$ UHC used net patient service revenue more efficiently in generating net patient accounts receivable in $2003.$

W$.$ One dollar of net income can generate $4\mathrm{.}46$ cents of total revenue.

X$.$ Each dollar of total liabilities can finance $19\mathrm{.}9$ cents of total assets.

Y$.$ Compare to $2003,$ UHC can cover more days of daily expenses in $2004.$

Z$.$ For each dollar of current liabilities, we have $2\mathrm{.}87$ dollars current assets to pay for it$.$

AA$.$ Each dollar of total assets can finance $19\mathrm{.}9$ cents of total liabilities.

BD$.$ Compare to $2003,$ UHC used equity more efficiently to generate net income in $2004$

DD$.$ Compare to industry average, UHC did

From the aboved statements, choose the ratio interpretation for "Total Margin" $($put the letter ABCDEF only, no statements$)$ From the aboved statements, choose the ratio interpretation for "Current Ratio" From the aboved statements, choose the ratio interpretation for "Debt Ratio" From the aboved statements, choose the ratio interpretation for "Total Asset Turnover" From the aboved statements, choose the financial performance for "Total Margin" From the aboved statements, choose the financial performance for "Return on Equity"

From the aboved statements, choose the financial performance

for "Average Collection Period"

From the aboved statements,

choose the financial performance for "Days Cash on Hand"