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.© BrainMass Inc. brainmass.com June 4, 2020, 4:32 am ad1c9bdddf
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 ...
This solution explains how creditors use ratio analysis to make financial decisions in regards to healthcare organizations.