Resources: Ch. 11 of Health
Care Finance: Basic Tools for Non-financial Managers (3rd ed.), Doctors Smith
and Brown Statement of Net Income and Balance Sheet Use the Ratio Analysis Form
to complete the following:
Define each of the following
ratios: Current ratio Quick ratio Debt service coverage ratio Operating margin
Return on total assets Explain the purpose of each ratio. Compute the following
ratios from the Doctors Smith and Brown financial statements: Current ratio
Quick ratio Debt service coverage ratio Operating margin Return on total assets
Explain what these ratios tell you about the status of the organization.
Compare to the median hospitals. See the table in the Ratio Analysis Form.
Cite your references where
indicated according to APA guidelines.Resources: Ch. 11 of Health
Care Finance: Basic Tools for Non-financial Managers (3rd ed.), Doctors Smith
and Brown Statement of Net Income and Balance Sheet Use the Ratio Analysis Form
to complete the following:Define each of the following
ratios: Current ratio Quick ratio Debt service coverage ratio Operating margin
Return on total assets Explain the purpose of each ratio. Compute the following
ratios from the Doctors Smith and Brown financial statements: Current ratio
Quick ratio Debt service coverage ratio Operating margin Return on total assets
Explain what these ratios tell you about the status of the organization.
Compare to the median hospitals. See the table in the Ratio Analysis Form.Cite your references where
indicated according to APA guidelines
