Case 1-Financial Ratio Analysis: Post your completed assignment in the formats indicated below as an attachment.
Using the financial information provided below, prepare an analysis of the two years provided in the financial statements.
You may prepare this assignment using Excel or Word. If you are using Word, please indicate the numbers used in your formulas.
Calculate each of the 25 ratios listed below. Each ratio counts 2 points per year (4 points total).
Average Length of Stay; Average Daily Census; Occupancy Percentage; Percentage Outpatient; Average Age of Plant; Net PP&E per bed; Debt per bed; Long Term Debt to Total Assets; Debt Service Coverage; Current Ratio; Days in Net Accounts Receivable; Average Payment Period; Gross Revenue per Adjusted Discharge; Operating Revenue per Adjusted Discharge; Expense per Adjusted Discharge; Administrative Cost per Adjusted Discharge; Percent Deductions from Gross Revenue; Operating Profit Margin; Total Profit Margin; FTEs per Average Daily Census; FTEs per 100 Adjusted Discharge; Salary and Benefits per FTE; Percent Salary and Benefits Expense; Percent Overhead Expense; Total Assets Turnover.
You will need the following information for accurate calculation. See below:
Year 2009: Salary and Benefits = $52,000,000; Patient Days = 52,000; Outpatient Revenue = $16,096,757; FTEs = 1,523; Beds in Service = 300; Gross Revenue = $175,000,000; Adjustment Factor = 1.10
Year 2008: Salary and Benefits = $52,000,000; Patient Days = 50,000; Outpatient Revenue = $15,827,150; FTEs = 1,522; Beds in Service = 300; Gross Revenue = $160,000,000; Adjustment Factor = 1.11
DISCHARGES: 2009: 10,162 2008: 10,071