Explore BrainMass

Financial statement analysis & operating indicator analysis

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

What is the primary difference between financial statement analysis and operating indicator analysis and why are both types useful to health services managers?

Describe the mechanics of the market multiple approach to business valuation.

© BrainMass Inc. brainmass.com October 25, 2018, 5:03 am ad1c9bdddf

Solution Preview

Financial statement analysis is the process of identifying financial strengths and weaknesses of a firm by appropriately establishing a relationship between the items of the balance sheet and the profit and loss account. Financial statements play an important role in setting the framework of managerial decisions Operating indicator analysis are quantifiable measurements that help an organization define and measure progress toward organizational goals that have been defined and agreed upon by management. These goals may change as an organization's goals change. Operating indicator analysis in health care are part of the health service manager's quality and risk managment plans. Plans are choosen based on the operating indicator analysis based on several factors such as regulatory and accrediting body initiatives and reccommendations as well as ...

Solution Summary

Financial statement analysis and operating indicator analysis and its usefulness to health service managers is discussed in this solution.

See Also This Related BrainMass Solution

Hospital Case Review


6. On the basis of the limited amount of information provided in the case, what are your recommendations to the board to correct any weaknesses noted?

7. This analysis focused on Du Pont and ratio analysis techniques. What other techniques can be used in financial statement analysis?

8. What additional information would be useful in the analysis?

9. What are the major problems one encounters in performing financial statement and operating indicator analyses?

10. Calculate and interpret the hospital's economic value added for 2007-2009. Is this measure of managerial performance consistent with your other conclusions?

11. What 5 financial and/or operating indicator metrics would you use on a KPI dashboard? Justify your choices.

View Full Posting Details