Posted: February 27th, 2023

STEP Three SIGNATURE ASSIGNMENT. SEE ATTACHMENTS

SIGNATURE ASSIGNMENT STEP 3

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Step 3 this week is to have you identify at least 
5 financial AND 5 operating ratios (10 ratios total from Chapter 17), which you will be locating and/or calculating to compare your two competing hospitals.  We’re talking about the following:

****list your 5 financial and 5 operating ratios. 

Financial Ratios:

· Total Margin

· Op Margin

· Return on Assets

· Return on Equity

· Current Ratio

· Acid Test Ratio

· Days in Acct Receivable

· Days Cash on Hand

· Bad Debt Ratio

· Long Term Debt to Assets Ratio

· Debt Service Coverage Ratio

· Debt to Capitalization

· Turnover on Operating Assets

· Cost to Charge Ratio

· Dupont Analysis

Operating Ratios:

· Occupancy Rate

· Average Daily Census

· Average Length of Stay

· Payor Mix

· Case Mix Index

· Profit per discharge

· Price per discharge

· FTEs per Bed

· Salary per FTE

You might consider getting ahead start on reading Chapter 17 and reviewing the Financial Condition Analysis content.   Note that your financial summary statements provide some of these ratios but it may be necessary in your final paper to make some calculations.

Supportive Resources:
Chapter 17
Chapter 17 Supplement

Interpretation of Financial Ratios

Glossary of Formulas

Example HCA ready Ratios

****list your 5 financial and 5 operating ratios.