5.1 CHAPTER 17: FINANCIAL CONDITION ANALYSIS Calculate the following ratios based upon data The Heart Hospital financial statements. For each ratio, provide a brief ratio analysis and comparative...

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5.1 CHAPTER 17: FINANCIAL CONDITION ANALYSISCalculate the following ratios based upon data The Heart Hospital financial statements.For each ratio, provide a brief ratio analysis and comparative analysis. Homework Problem 5.1Indicator Analysis:Briefly explain what the indicator means Comparative AnalysisCompare Riverside with peer group averages and explain how it did compared to other comparable hospitals. RATIOSHeart HospitalPeer Group Average The Heart Hospital Statement of Income and Retained EarningsPROFITABILITY Year Ended December 31, 2020Total Margin22.1%15.0%Indicator Analysis: (in thousands)Comparative Analysis Net patient service revenue$ 64,505 Operating Margin21.8%16.0%Indicator Analysis: Personnel expense$ 21,707Comparative Analysis Medical supplies and drugs15,047 Other operating expenses9,721 Interest expense1,322 Depreciation2,625ROA (return on assets)24.8%22.5%Indicator Analysis: Total operating expenses$ 50,422Comparative Analysis Income from operations14,083 Non-operating income$ 159 Net income$ 14,242ROE (return on equity)51.9%37.6%Indicator Analysis: Comparative Analysis Green Valley Healthcare, Inc.LIQUIDITY RATIOS Balance Sheet Year Ended December 31, 2020Current Ratio2.72.0Indicator Analysis: (in thousands)Comparative Analysis Cash and equivalents$ 14,202 Net patient accts receivable5,918Days Cash on Hand108.585Indicator Analysis: Supplies inventory1,211Comparative Analysis Prepaid expenses and other current assets1,429 Total current assets$ 22,760 Property and equipment$ 47,311Debt Ratio37.7%40.0%Indicator Analysis: Less accumulated depreciation13,542Comparative Analysis Net property and equipment$ 33,769 Other assets$ 901 Total assets$ 57,430Debt to Equity Ratio0.790.67Indicator Analysis: Comparative Analysis Accounts payable$ 1,910 Accrued compensation and benefits2,543 Other accrued liabilities1,843Times Interest Earned13.65.0Indicator Analysis: Current portion of long-term debt2,064Comparative Analysis Total current liabilities$ 8,360 Long-term debt$ 21,640 Total liabilities$ 30,000ASSET MANAGEMENT RATIOS Owners' equity$ 27,430 Total liabilities & equity$ 57,430Fixed Asset Turnover1.91.4Indicator Analysis: Comparative Analysis Total Asset Turnover1.121.50Indicator Analysis: Comparative Analysis Days in Patient AR33.520.0Indicator Analysis: Comparative Analysis Average Age of Plant5.211.5Indicator Analysis: Comparative Analysis 5.2 CHAPTER 17: FINANCIAL CONDITION ANALYSIS Homework Problem 5.2 RIVERSIDE HOSPITAL OPERATING DATA OPERATING DATA Net inpatient revenue$118,449,000 Net outpatient revenue$128,650,000 Net patient service revenue$247,099,000 Inpatient operating expenses$116,265,050 Total salaries$117,914,830 Total discharges21,475 Inpatient days123,579 # licensed and staffed beds500 Total FTEs3,650 Inpatient FTEs1,725 Calculate the following ratios based upon the data aboveFor each ratio, provide a brief ratio analysis and comparative analysis. Indicator Analysis:Briefly explain what the indicator means Comparative AnalysisCompare Riverside with peer group averages and explain how it did compared to other comparable hospitals. OPERATING INDICATOR ANALYSISHeart HospitalIndustry Average Profit per Discharge$102$73Indicator Analysis Comparative Analysis Net Price per Discharge$5,515.67$5,965Indicator Analysis Comparative Analysis Outpatient Revenue %52.1%58.5%Indicator Analysis Comparative Analysis Occupancy Rate67.7%56.6%Indicator Analysis Comparative Analysis Average Length of Stay5.84.7Indicator Analysis Comparative Analysis Inpatient FTEs per Occupied Bed10.85.6Indicator Analysis Comparative Analysis Salary per FTE$32,305.43$33,977Indicator Analysis Comparative Analysis
Answered 1 days AfterDec 01, 2021

Answer To: 5.1 CHAPTER 17: FINANCIAL CONDITION ANALYSIS Calculate the following ratios based upon data The...

Sumit answered on Dec 02 2021
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5.1
    CHAPTER 17: FINANCIAL CONDITION ANALYSIS            Calculate the following ratios based upon data The Heart Hospital financial statements.                For each ratio, provide a brief ratio analysis and comparative analysis.
    Homework Problem 5.1        
                    Indicator Analysis:    Briefly explain what the indicator means
                                Comparative Analysis    Compare Riverside with peer group averages and explain how it did compared to other comparable hospitals.
                RATIOS    Heart Hospital    Peer Group Average
    The Heart Hospital
    Statement of Income and Retained Earnings            PROFITABILITY
    Year Ended December 31, 2020            Total Margin    22.1%    15.0%        Indicator Analysis:    This ratio helps to determine the net profit earned by the company for each 1 dollar of sale made by the company.
    (in thousands)                            Comparative Analysis    Since the Margin of Heart Hospital is more than Peer Group Average, hence the hospital is doing good.
    Net patient service revenue    $ 64,505
                Operating Margin    21.8%    16.0%        Indicator Analysis:    This ratio helps to determine the operating profit earned by the company for each 1 dollar of sale made by the company.
    Personnel expense    $ 21,707                        Comparative Analysis    Since the Margin of Heart Hospital is more than Peer Group Average, hence the hospital is doing good.
    Medical supplies and drugs    15,047
    Other operating expenses    9,721
    Interest expense    1,322
    Depreciation    2,625        ROA (return on assets)    24.8%    22.5%        Indicator Analysis:    This ratio helps to determine the efficiency of the total assets used by the company.
    Total operating expenses    $ 50,422                        Comparative Analysis    Since the ROA of Heart Hospital is more than Peer Group Average, hence the hospital is doing good.
    Income from operations    14,083
    Non-operating income    $ 159
    Net income    $ 14,242        ROE (return on equity)    51.9%    37.6%        Indicator Analysis:    This ratio helps to determine the efficiency of the total equity used by the company.
                                Comparative Analysis    Since the ROE of Heart Hospital is more than Peer Group Average, hence the hospital is doing good.
    Green Valley Healthcare, Inc.            LIQUIDITY RATIOS
    Balance Sheet
    Year Ended December 31, 2020            Current Ratio    2.7    2.0        Indicator Analysis:    This ratio helps to determine whether the company would be able to pay its current obligations using current assets of the company.
    (in thousands)                            Comparative...
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