Using Exhibits 3.1 and 4.1, calculate the 11 ratios for both years: 2014 and 2015. For each calculation, compare your answer to the benchmarks provided in the linked template document below and determine whether your figures are favorable, unfavorable, or approximately the same?

Healthcare Finance 6th edition

Exhibit 3.1 page 91

Exibit 4.1 page 122

Ratio Analysis

Name

Part 1:

Enter the information based on your computations.

	2014	2015	Benchmark	Favorable (F), Unfavorable (U), or Approximate (A)? 2015/2014
Current ratio			2.00
Days cash on hand			15.00
Days in A/R			45.00
Operating margin			4%
Return on total assets			4%
Return on net assets			10%
Debt to capitalization			50%
Times interest earned			4.00
Debt service coverage			2.00
Fixed asset turnover			3.00
Salary and benefit/NPSR			55%

Part 2:

Type your memo to senior management below

ng, T f payers for 2015 EXHIBIT 3.1 2014 Sunnyvale $123.565 Operations $121,765 Years Ende $140,924 (in thous erating Revenues op Clinic: Statements ient service revenue $ 150,118 2,000 at Provision for bad debts ess: Net patient service revenue $148,118 premium revenue 18,782 3,079 $169,979 16,455 December 2,704 2015 and Other revenue Net operating revenues Expenses: salaries and benefits Supplies Insurance Lease Depreciation Interest Total expenses $126,223 20,568 4,518 3,189 6,405 5,329 $102,334 18,673 3.710 2,603 5,798 3,476 166,232 $3,747 $136,594 $ 4,330 Operating income Nonoperating income: Contributions nvestment income $ 243 3,870 $ 4,113 $ 7,860 $ 198 3,678 S 3,876 8,206 Total nonoperating income Net income