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Financial and managerial accounting- Operating Margin

For financial and managerial accounting: When dealing with a healthcare organization, what does operating margin tell you about the organization and how would you calculate this ratio? What are the commonly used financial ratios and how would you calculate?

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Ratios help us in understanding the performance of the organization. It is the relationship between two or more financial figures. Operating margin tells about the operating efficiency of the organization. It is calculated by Operating profit / Net Sales. Following ratios will be considered:

1) Current ratio= Current Assets/Current Liabilities & Quick Ratio= Quick Assets/Current Liabilities ...

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Solution helps in understanding the concepts related to Financial and managerial accounting