Ratio Analysis

Write a 4 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) Non-financial 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.




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