First, pick a publicly traded healthcare company. Ideally, a hospital corporation and that too with one that has the balance sheet for years 2012 and 2013. If your chosen hospital corporation does not have 2013 balance sheet, then try to get the closest years available to 2013 as it would be like comparing apples to apples.In order to get full credit for your calculations, you MUST provide the formulas and which factors you use to calculate the various elements required by the assignment.
As for the description of your chosen entity, write like a journalistic reporter and tell me all about the good, the bad and the ugly of your healthcare company. Try to be realistic as to the various factors that may attribute to the balance sheet being the way it is and why it differs from that of MMHS.
Case Study Financial Ratio Case
Review the financial statements for any publicly traded healthcare company. Prepare an analysis of the most recent two years as provided in the financial statements.
Ratios: You must calculate the following (Textbook: Essentials of Health Care Finance by William O. Cleverley, Paula H. Song, & James O. Cleverley)
• Total Margin
• Operating Profit Margin
• Debt Ratio
• Current Ratio
• Quick Ratio
• Days Cash on Hand
• Average Payment Period
• Days in Accounts Receivable
Description: Your brief description of the company should include the following:
• An overview of the company
• Services provided by the company
• Number of facilities and location
• Type of legal entity
• A brief history of the company
• Recent events that impacted the company
• Future plans for the company
Analysis: Compare your results with the National Standards.
Indicate whether your calculations compare positively or negatively to the National Standards. Provide a possible reason for either scenario. In addition to your National Standards summary, provide a brief analysis of the company's overall financial position.