Assessment #4: Ratio Analysis
- Write a 4-6 page paper in which you discuss the value of ratio analysis in decision making for health care organizations. Complete the following in your paper:
- Discuss the meaning of ratio analysis in healthcare.
- Pick one (1) ratio from each major group from the financial statements.
- Liquidity ratios (Current ratio, Days Cash-on-Hand, Quick Ratio)
- Profitability ratios (ROE, ROA, Total Margin, Operating Margin)
- Leverage/Capital Structure Ratios (Debt ratio, Equity ratio, Debt to Equity Ratio)
- Nonfinancial Ratios (Occupancy rate, payer mix, ALOS, Expense per discharge, FTE per bed, HMO penetration)
- Discuss the ratio and provide examples with calculations
- Evaluate the meaning of the calculations related to the financial health of the organization.
- Explain the factors that affect the results.
You can also utilize the Help4UHMO Organization financial statements or a real-life health care organization to evaluate by researching their financial statements. You can use the organization from Assessment #2.
- Format your paper consistent with APA guidelines.
- Provide a minimum of two (2) cited sources in your paper.