You have recently successfully completed an undergraduate course in healthcare finance. You have just accepted a job offer at a local pediatric hospital as the senior department accountant. The hospital is in a rural and underserved area, with a high population of indigent community. Your boss, the CFO, would like a comprehensive analysis of the current financial status of the hospital. He gives you two months to gather and analyze required data and present this to him in a report.

Review of Financial Health of The Pediatric Hospital

• Identification of ratios to determine the profitability, liquidity, capital structure, and asset efficiency.

• Determination of Profitability:
  • Identify a ratio that would communicate organization profitability.
  • Present a formula that would be used to arrive at the ratio identified.
  • Meaning of ratio.

• Determination of Liquidity:
  • Identify a ratio that would communicate organization liquidity.
  • Present a formula that would be used to arrive at the ratio identified.
  • Discuss meaning of ratio.

• Determination of Capital Structure:
  • Identify a ratio that would indicate the capital structure of an organization.
  • Present a formula that would be used to arrive at the ratio identified.
  • Discuss meaning of ratio.

• Determination of Asset Efficiency:
  • Identify a ratio that would indicate efficiency of organization assets.
  • Present a formula that would be used to arrive at the ratio identified.
  • Discuss meaning of ratio.