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    Creditors using ratio analysis

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    Discuss how a creditor or potential creditor of a healthcare organization can use ratio analysis to make a credit decision about a potential healthcare customer.

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    Creditors in any area, including healthcare, can use ratio analysis to determine the credit worthiness of a potential customer. Ratio analysis was never intended to be used alone but rather should be used as a tool for financial decision-making. The creditor should analyze the healthcare organization's financial statements, annual report, and combine the information with a ...

    Solution Summary

    This solution explains how creditors use ratio analysis to make financial decisions in regards to healthcare organizations.