+44 7743 307695
Jun 07, 2023
  • Review the “Ratio Analysis Practice Problem” to understand how ratios were calculated with 2019 data. Then, using the financial statements for Bobcat Hospital in Chapter 3, calculate the following ratios for 2020:
    Current ratio
    Collection period ratio
    Days cash on hand, all sources, ratio
    Days cash on hand, short-term sources, ratio
    Average payment period ratio
    Operating margin ratio
    Total margin ratio
    Return on net assets ratio
    Total asset turnover ratio
    Average age of plant ratio
    Fixed asset turnover ratio
    Current asset turnover ratio
    Inventory turnover ratio
    Net asset financing ratio
    Long-term debt to capitalization ratio
    Debt service coverage ratio cash flow to debt ratio
    Indicate whether each 2020 ratio is better or worse than the 2019 ratio.
    Indicate whether the 2020 ratios are better or worse than the benchmarks using the Optum medians for each ratio (see exhibit 3.5 in the text).
    Examine the 2019 and 2020 ratios and assess the hospital’s financial performance. Is the hospital in better or worse financial shape in 2020 as compared to 2019?
    If you were COO of Bobcat Hospital, how would you use this ratio data to make decisions for 2021?
    Details: Use Excel or a table in Word to organize your answers. Use a combination of numerical and narrative answers.


    Submit your assignment to the Unit 4 Assignment Dropbox.

    Unit 4 Assignment Grading Rubric.

    Note: This assignment adapted from Nowicki, M. (2022). Introduction to the financial management of healthcare organizations (8th ed.) Health Administration Press.

Order this Assignment now

Total: GBP120

fables template