HLTH 8401 Week 8 Assignment : Ratio Analysis
This Assignment aligns to the NCHL domain of Health System Awareness & Business Literacy. Specifically, it focuses on the first level of the Financial Skills Competency: “Explains the Organization’s Financial Metrics and Reports.” For more information on how this icon aligns to the NCHL Health Leadership Competency Model 3.0, refer to the MHA Iconography page.
Note: Your Instructor will post the document for this Assignment by Monday of Week 8 in the Announcements.
It is important to understand that when interpreting financial statements, the numbers alone may not provide the whole financial picture of an organization. Instead, you must analyze the statements using ratios, which are then compared to benchmarks across the healthcare industry. For this Assignment, examine the financial health of a community hospital.
Resources
Be sure to review the Learning Resources before completing this activity.
To prepare for this Assignment:
- Review the Week 8 Assignment 1 document provided to you by the Instructor. Examine the financial statements from the community hospital. Reflect on how you will use this financial data to calculate and analyze the organization’s financial ratios.
- Refer to Chapter 13 of Gapinski’s Understanding Healthcare Financial Management.
- Download the Week 8 Assignment 1 Ratio Excel Template.
By Sunday
Submit the following:
- Using the statement of operations and balance sheet for the community hospital, complete the “Week 8 Ratio Excel Template.”
Refer to the Week 8 Assignment 1 Rubric for specific grading elements and criteria. Your Instructor will use this grading rubric to assess your work.
submission information
Before submitting your final assignment, you can check your draft for authenticity. To check your draft, access the Turnitin Drafts from the Start Here area.
- To submit your completed assignment, save your Assignment as WK8Assgn1_LastName_FirstInitial
- Then, click on Start Assignment near the top of the page.
- Next, click on Upload File and select Submit Assignment for review.
SOLUTION HLTH 8401 Week 8 Assignment: Ratio Analysis
| Week 8 Assignment 1 Ratio Template | ||||||||||||||
| A | B | D | E | F | G | |||||||||
| (in ‘000) | ||||||||||||||
| 12/31/2022 | 12/31/2023 | 2022 | 2023 | 2022 | 2023 | |||||||||
| Ratio[a] | [D/E] | [F/G] | Numerator | Denominator | Numerator | Denominator | ||||||||
| Current Ratio | 1.66 | 2.11 | $12,600 | $7,582 | $14,600 | $6,912 | ||||||||
| Quick Ratio | 1.40 | 1.78 | $10,600 | $7,582 | $12,300 | $6,912 | ||||||||
| Acid Test Ratio | 0.11 | 0.17 | $800 | $7,582 | $1,200 | $6,912 | ||||||||
| Days in Accounts Receivable | 61 | 62 | $9,800 | $162 | $11,100 | $178 | ||||||||
| Days Cash on Hand | 13 | 17 | $800 | $63 | $1,200 | $70 | ||||||||
| Average Payment Period (Days) | 61 | 54 | $7,582 | $52 | $6,912 | $58 |
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(FINAL ANSWER) HLTH 8401 Week 8 Assignment 2: Break-Even Point Formulas