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Patton-Fuller Ratios

Using the ratios calculated in week 2 discuss, describe and explain 2 reasons to replace the CEO.

Patton-Fuller Ratios Assignment
Learning Team B
HCS/405 Health Care Financial Accounting
January 8th 2013

2009:
1. Current Ratio: 128,867/23,807 = 5.41:1
2. Quick Ratio: 22,995+59,787/23,807 82,782/23,807 = 3.48:1
3. Days Cash On Hand: 22,995/(462,293/365) = 22,995/1,266.55 = 18.15 Days
4. Days Receivables: 59,787/(459,900/365) = 59,787/1,260 = 47.45 Days
5. Debt Service Coverage Ratio: (627+3,708+36,036)/14,609 = 40,371/14,609 = 2.76
6. Liabilities to Fund Balance: 462,153/126,564 = 3.65
7. Operating Margin (%): 689/462,982 = 0.14
8. Return on Total Assets (%): 4,335 (627+3,708)/588,767 = 0.73

2008:
1. Current Ratio: 130,026/8,380 = 15.5:1
2. Quick Ratio: 41,851+37,666/8,380 = 79,517/8,380 = 9.49:1
3. Days Cash On Hand: 41,851/(437,424/365) = 41,851/1,198.42 = 34.92 Days
4. Days Receivables: 37,666/(418,509/365) = 37,666/1,146.6 = 32.85 Days
5. Debt Service Coverage Ratio: ((15,846)+3,597+24,955)/4,195 = 12,706/4,195 = 3.02
6. Liabilities to Fund Balance: 213,450/335,035 = 0.63
7. Operating Margin (%): (16,110)/421,314 = -3.82
8. Return on Total Assets (%): (12,249) ((15,846)+3,597)/548,535 = -2.23

Solution Summary

This solution (excel) consists of ratio analysis over several years to determine the performance of the CEO and gives conclusion in a (word) document to define the CEO performance.

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