We were told to use 2017 SEC Filings to get our numbers to put into the equations.

Measure HCA LPNT Ratios Formula 1. Short-Term Solvency, or Liquidity, Measures Current ratio Current assets / Current liabilities A measure indicating the ability to meet the short term debts obligations from the current assets. Higher means more liquid, but may indicate inefficiency of short-term asset use Days cash on hand Cash & equivalents + short term investments (Total operating expense depreciation 3651 A measure for whether or not a business can meet its payments as they are due II. Long-Term Solvency Measures Debt ratio Total debt/ Total assets Measures percentage of assets provided by creditors, higher means higher probability of financial distress Debt-to-cquity ratio Total debt / Total equity Measures percentage of assets provided by creditors higher means higher probability of financial distress Time interest earned ratio (TIE) EBIT / Interest expense A measure on how well interest obligations are covered (also called interest coverage ratio) A measure on how fast products can be sold TIL Asset Management or Turnover, Measures Net patient accounts Net patient service revenue / Net patient receivable turnover accounts receivable Days in patient accounts 365 Days/Receivable tumover receivable Fixed asset turnover Revenue / Net fixed assets Also called average collection period (ACP) Measures for asset utilization efficiency Measures for asset utilization efficiency Total asset turnover Revenue / Total assets TV. Profitability Measures Profit margin Net income/Total revenue Overall profitability. High profit margin means more profitable Egin means more Operating margin Operating income / Total operating revenue Operation profitability Return on assets Net income / Total assets A measure of proper dollar of assets Return on equity Net income / Total equity A measure of how the stockholders fared V. Operation Measures Net price per discharge Net inpatient revenue / Total discharges Profit per discharge Inpatient Profit / Total discharges Inpatient days/ (Number of licenseded beds JA measure of gross income generated by each Jinpatient without considering cost amount. A measure of overall profit generated by each Jinpatient A measure of the extent of utilization of a hospital's beds Occupancy rate Average length of stay KALOS) Inpatient days / Total discharges A measure of extent of patients that need intensive creatment. In this project, you will replicate financial strength analysis for two competing hospital systems: HCA Healthcare (Ticker: HCA), LIFEPOINT Health (Ticker: LPNT). As the first step, you need do ratio analysis using the attached 'Ratio Analysis Project' excel workbook. In the excel workbook, you need to show the calculation and highlight relative better performance for each ratio calculated. The next step is to analyze the financial condition. For each hospital system, you need to compose a brief introduction on the business practice and summarize financial strength and weakness according to the ratio analysis results. Finally, you need to propose the Key Performance Indicators (KPIs) for each hospital. Required Submissions The excel workbook with your ratio analysis calculations and highlights The report in Words with required narratives: business practice introduction, financial strength and weakness summary, and KPIs proposed. Measure HCA LPNT Ratios Formula 1. Short-Term Solvency, or Liquidity, Measures Current ratio Current assets / Current liabilities A measure indicating the ability to meet the short term debts obligations from the current assets. Higher means more liquid, but may indicate inefficiency of short-term asset use Days cash on hand Cash & equivalents + short term investments (Total operating expense depreciation 3651 A measure for whether or not a business can meet its payments as they are due II. Long-Term Solvency Measures Debt ratio Total debt/ Total assets Measures percentage of assets provided by creditors, higher means higher probability of financial distress Debt-to-cquity ratio Total debt / Total equity Measures percentage of assets provided by creditors higher means higher probability of financial distress Time interest earned ratio (TIE) EBIT / Interest expense A measure on how well interest obligations are covered (also called interest coverage ratio) A measure on how fast products can be sold TIL Asset Management or Turnover, Measures Net patient accounts Net patient service revenue / Net patient receivable turnover accounts receivable Days in patient accounts 365 Days/Receivable tumover receivable Fixed asset turnover Revenue / Net fixed assets Also called average collection period (ACP) Measures for asset utilization efficiency Measures for asset utilization efficiency Total asset turnover Revenue / Total assets TV. Profitability Measures Profit margin Net income/Total revenue Overall profitability. High profit margin means more profitable Egin means more Operating margin Operating income / Total operating revenue Operation profitability Return on assets Net income / Total assets A measure of proper dollar of assets Return on equity Net income / Total equity A measure of how the stockholders fared V. Operation Measures Net price per discharge Net inpatient revenue / Total discharges Profit per discharge Inpatient Profit / Total discharges Inpatient days/ (Number of licenseded beds JA measure of gross income generated by each Jinpatient without considering cost amount. A measure of overall profit generated by each Jinpatient A measure of the extent of utilization of a hospital's beds Occupancy rate Average length of stay KALOS) Inpatient days / Total discharges A measure of extent of patients that need intensive creatment. In this project, you will replicate financial strength analysis for two competing hospital systems: HCA Healthcare (Ticker: HCA), LIFEPOINT Health (Ticker: LPNT). As the first step, you need do ratio analysis using the attached 'Ratio Analysis Project' excel workbook. In the excel workbook, you need to show the calculation and highlight relative better performance for each ratio calculated. The next step is to analyze the financial condition. For each hospital system, you need to compose a brief introduction on the business practice and summarize financial strength and weakness according to the ratio analysis results. Finally, you need to propose the Key Performance Indicators (KPIs) for each hospital. Required Submissions The excel workbook with your ratio analysis calculations and highlights The report in Words with required narratives: business practice introduction, financial strength and weakness summary, and KPIs proposed