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Caution when using financial ratios to analyze healthcare.

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Discuss why one should use caution when using financial ratios for analyzing a healthcare organization's current financial position and future viability. Provide examples of a hypothetical healthcare organization' ratios to support your discussion.

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Solution Summary

This solution explains why one should use caution when using financial ratios for analyzing a healthcare organization's current financial position and future vitality.

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Caution should be used because the ratios can include losses from activities not related to the core business activities. A hypothetical organization could invest cash ...

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