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.