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Nonprofit healthcare viability horizontal vertical analysis

Source of Revenue: Viability
Use the balance sheet and statement of income you downloaded for Ascension Health a nonprofit, religious-based healthcare system, from
Download and review the financial statements of HCA, Inc., a for-profit healthcare system, from

In a Microsoft Excel spreadsheet, prepare a vertical analysis of the company for the years 2012 and 2013 and a horizontal analysis from 2012 (base year) to 2013 (subsequent year).
Discuss your findings. Here are a few, but not all, the questions you should consider.

Is Ascension Health growing?
What line items reflected the largest-percentage increases and/or decreases?
What is the financial impact these changes have on the company's financial viability currently and in the future?

Solution Preview

Is Ascension Health growing?
Yes, their revenue, assets and net assets are all growing in double digits (over 10%). Their expenses are also growing. Doubtful accounts are growing almost twice as fast as revenues but a large contribution ($2,012,963) in 2013 more than offset the growth in doubtful accounts. Without this large one-time donation, Ascension is still growing but not at the rate that the bottom line would indicate.

HCA is also growth in at similar rates for revenue and slower rates for assets and equity. Their doubtful
Accounts are growing ...

Solution Summary

Your spreadsheet shows subtotals from the balance sheet and income statement for 2012 and 2013 with vertical and horizontal analysis. The discussion is 343 words and briefly examines the large shifts over the two year period.