omework+Assignment+5+-+Chp+17 (1).xlsx
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 Margin15.0%Indicator Analysis: (in thousands)Comparative Analysis Net patient service revenue$ 64,505 Operating Margin16.0%Indicator Analysis: Personnel expense$ 21,707Comparative Analysis Medical supplies and drugs15,047 Other operating expenses9,721 Interest expense1,322 Depreciation2,625ROA (return on assets)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)37.6%Indicator Analysis: Comparative Analysis Green Valley Healthcare, Inc.LIQUIDITY RATIOS Balance Sheet Year Ended December 31, 2020Current Ratio2.0Indicator Analysis: (in thousands)Comparative Analysis Cash and equivalents$ 14,202 Net patient accts receivable5,918Days Cash on Hand85Indicator Analysis: Supplies inventory1,211Comparative Analysis Prepaid expenses and other current assets1,429 Total current assets$ 22,760 Property and equipment$ 47,311Debt Ratio40.0%Indicator Analysis: Less accumulated depreciation13,542Comparative Analysis Net property and equipment$ 33,769 Other assets$ 901 Total assets$ 57,430Debt to Equity Ratio0.67Indicator Analysis: Comparative Analysis Accounts payable$ 1,910 Accrued compensation and benefits2,543 Other accrued liabilities1,843Times Interest Earned5.0Indicator 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 Turnover1.4Indicator Analysis: Comparative Analysis Total Asset Turnover1.50Indicator Analysis: Comparative Analysis Days in Patient AR20.0Indicator Analysis: Comparative Analysis Average Age of Plant11.5Indicator 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$73Indicator Analysis Comparative Analysis Net Price per Discharge$5,965Indicator Analysis Comparative Analysis Outpatient Revenue %58.5%Indicator Analysis Comparative Analysis Occupancy Rate56.6%Indicator Analysis Comparative Analysis Average Length of Stay4.7Indicator Analysis Comparative Analysis Inpatient FTEs per Occupied Bed5.6Indicator Analysis Comparative Analysis Salary per FTE$33,977Indicator Analysis Comparative Analysis