Health Care Organizations and Financial Ratios
Not what you're looking for?
To analyze health care organizations, many authorities use financial ratios such as current ratio, quick ratio, days of cash on hand, accounts receivable days, debt service coverage, liabilities to net worth (or liabilities to equity), operating margin, and return on investment. What is the value of these eight ratios to health care organizations?
Purchase this Solution
Solution Summary
The solution discusses health care organizations and financial ratios.
Solution Preview
Hospitals are business organizations that use the same financial indicators that are needed to keep their institution solvent and their doors open. Current ratio measures indicators determine whether the healthcare organization has enough resources to pay their debt for a period of a year. A quick ratio measure can determine how soon the institution could liquidate its current assets or could at least have a measure in mind of this number.
Days of cash on hand are the operating expenses of the organization minus the depreciation expense. Depreciation is basically the decrease in value of all the assets owned by the company. A hospital needs to estimate the value of the organizations equipment and how this will impact the care of patients. Accounts receivable days are the number of days it takes to collect ...
Purchase this Solution
Free BrainMass Quizzes
CPR (Red Cross Standards)
Are you up to date on your CPR skills? Find out if you know what to do in an emergency with this quiz.
Test your health planning and program evaluation knowledge
Health planning and program evaluation is an important aspect of the Health Sciences' field. Organizations and communities must understand the needs of their audiences, and a way to obtain this datum is through proper design and assessment. This quiz will test your ability to understand the importance of planning and evaluation in the health sector.
Fibromyalgia
This quiz provides a brief overview of Fibromyalgia. Research is currently evolving regarding this diagnosis.
Labor and Delivery
Do you know about the stages of delivery? Find out with this quiz!
Crohn's Disease
How much do you know about this condition?