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: o Discuss the meaning of ratio analysis in healthcare. o Pick only one (1) ratio from EACH major group from the financial statements. (e.g. Current ratio, ROE, Debt to equity, ALOS) • Major Groups: o o Liquidity ratios (Current ratio, Days Cash-on-Hand, Quick Ratio) o Profitability ratios (ROE, ROA, Total Margin, Operating Margin) o Leverage/Capital Structure Ratios (Debt ratio, Equity ratio, Debt to Equity Ratio) o Nonfinancial Ratios (Occupancy rate, payer mix, ALOS, Expense per discharge, FTE per bed, HMO penetration) o Discuss one (1) ratio (from EACH major group) using the following criteria: o What is the meaning of each ratio? o Evaluate the meaning of the ratio related to the financial health of the health care organization. Show the calculations. o Explain the factors that affect the results related to the financial health of the organization. You can also utilize the sample Help4UHMO Organization financial statements (located under week 6) or a real-life health care organization to evaluate by researching their financial statements. Show relevant calculations.