Financial Ratio And Operating Indicator Analysis Case Study

Financial Ratio And Operating Indicator Analysis Case Study Riverview Community Hospital operates as a not for profit facility with 210 inpatient beds. The financial ratio and operating indicator analysis of Riverview Community Hospital will attempt to determine their performance within their market. The further assessment of the cash flows, Du Pont equation, and economic value added (EVA) will offer insight to their financial performance. The assessment of the hospitals cash flows will allow the evaluator to determine if the companys core operations were profitable, how capital was raised, and how the institutions financial strategies effected their cash position. The ending cash and investments for 2009 were reduced by almost forty-five percent from the previous year. This downward trend may become an area of concern, because it could create an inability for the hospital to pay its daily operating commitments. The fixed asset acquisitions have continued to exceed the depreciation indicating a possible area of investigation for budget development to control costs. This was a decrease of forty-six percent from the previous year and may require further financial strategies to justify their expenditure. The most significant factor affecting the change in the cash flow was the payment of long term debt ($1.4 million) as compared to the previous year when more than $3.5 million was incurred to cover for their capital purchases. The Du Pont analysis offers the management an overall understanding of the profitability of the institution. Riverviews total margin of 6.75% falls within the upper quartile of the industry data for hospitals with 200-299 beds (Table 2). This higher profit margin indicates that Riverview has attained better control over its total expenses than the majority of similar size hospitals. The asset turnover of 0.67 falls within the lowest quartile of comparable hospitals. This asset utilization indicates that the hospital is not very efficient in generating revenues for every dollar of asset. The equity multiplier of 1.69 falls below the median data group. This indicates that the institution possesses lower debt financing and lower risk than the average hospital but this results in reducing its financial leverage. Riverviews return on equity (ROE) falls just above the median of similar size hospitals at 7.66% which translates to 7.6 cents profit for every dollar of revenue. This is signifi cantly lower than the top quartile of comparable facilities that had more than double Riverviews ROE. The analysis of the income statement and the balance sheet requires the calculations of financial ratios to obtain meaningful data that can be compared to industry values. There are numerous ratios that can be utilized to assess the financial status of a business. The profitability ratios of Riverview fall within the median range, except their total profit margin of 6.75% (Table 3). This level places it within the upper quartile of comparable hospitals. This would indicate that Riverview manages to control expenses well. Riverviews current ratio and days cash on hand fall within the top twenty-five percent of the industry data. These liquidity ratios indicate that Riverviews current assets would provide $2.67 for every dollar of current liabilities, and they have 32.72 days of cash on hand. These ratios indicate to their creditors that they are in position to meet their financial obligations. The debt management ratios all fall within the median range. The asset management ratios fal l within the median range except the fixed and total asset turnover. Riverviews utilization of assets falls within the lowest quartile. The fixed asset turnover of 0.86 times may be an indication of their inability to offer specific services. The total asset turnover of 0.67 times is not as low as its fixed asset indicating they are utilizing current assets better than fixed assets. Inflation or age of the hospital may adversely affect these ratios; however, Riverview has an estimated fixed asset age of 6.12 years. Riverview falls within lower quartile to indicate that their hospital offers more recently purchased acquisitions. The operating indicator analysis examines internal data to determine the factors that contribute to the financial status of the company. These indicators are used by managers to identify and guide financial strategies for the future. Riverviews profit indicators are within the median range of the industry; however, the significant downward trend for profit per inpatient discharge should be followed closely (Table 4). The profit per outpatient visit has improved but is still negative. The net price per visit and revenue percent of outpatient services are both within the upper quartile. The outpatient services are still not producing a profit with the increased price per visit. Riverviews occupancy rate is within the median range, but their average daily census is within the lower quartile. This would further indicate their need to utilize fixed assets more effectively. The hospitals adjusted length of stay is within the lowest quartile indicating a good management of discharging patie nts. The intensity of service indicators show that the cost per discharge and visit are within the lowest quartile but their case mix is in the upper quartile. They are providing more intense service to their patients at a lower cost. The outpatient labor hours per visit are within the upper quartile at 9.24 hours. The outpatient service would require further investigation of these higher labor hours to increase efficiency. The economic value added (EVA) measures the managements ability to create or destroy wealth for their company. Stern Stewart Co. (Stern, 2010) developed this metric to offer a more effective evaluation of managements ability to provide stockholders value. The EVA analysis of profitability takes into account all costs including: capital, equity, and its financing. The higher the EVA measure, the more effective management is at creating value for their shareholders. The EVA measurement for Riverview has trended negatively over the two previous years but has improved twenty-five percent this past last year to -1.2 million (Figure 1). The factors contributing to this negative change were shrinking profits and an increasing accumulation of capital. The EVA dollar amount in 2009 improved due to decreased capital purchases and reduction in long term debt. The limitation of the EVA calculation; does not offer an allowance for the social value provided to the community by the not-for-profit facility. The assessment of the financial performance of Riverview Community Hospital reveals several areas of concern. The further analysis of fixed asset acquisitions should be justified by the hospitals financial strategies. These capital purchases significantly outpace the yearly depreciation allowance. Riverviews REO analysis reveals a significant decrease in total margin that remains in the upper quartile of their industry. The hospital should assess the viability of improving both total asset turnover and equity multiplier to bring their ROE in line with their level of total margin performance. They should determine if improved fixed asset utilization will better leverage them within the market. The profit of their outpatient services is an area that should be targeted for effective cost reduction strategies. The financial ratio and operating indicator analysis may have several limitations that need to be addressed. The income from non-operating revenue for not-for-profit hospitals can be unpredictable and inconsistent. This outside source of revenue can be a significant portion of their income. This could distort the calculations based on that highly unreliable income. The many financial ratios may not fully account for the not-for-profit status of the hospital and may need further analysis to determine their validity. The unaccounted equity provided to the community is not factored into the equations. The additional healthcare benefits provided to the shareholders of the community may out weight the decrease in effective asset utilization by the facility.

Old Money vs. New Money

Scott Fitzgerald novel The Great Gatsby. By including this aspect in the boo k, Fitzgerald purpose is to reveal the two faces Of corruption in America through the novel' s geography and its characters. The book's geography represents the dichotomy of corruption through its pee pole. Two regions of Long Island, East Egg and West Egg, make up the setting of the novo el. These separate entities reveal the corrupt nature of â€Å"old wealth† versus â€Å"new wealth,† and con firm the formers distaste of the latter.When Gatsby invites the narrator, Nick, to one of his extra vagrant parties, Nick notices upon first observations that those in the party from East Egg â€Å"ass med to themselves] the function of representing the staid nobility of the countryside East Egg condescending to West Egg, and carefully on guard against its spectroscopic g tatty' (Fitzgerald 49). Since the residents of West Egg have unlaundered wealth, those in East Egg of more established wealth look d own upon them as possessing a lower social status. However, both groups are equally corrupt.Despite people of old money condescending ‘the blatant kinds of corruption† demonstrated by those with new money, they themselves â€Å"[Indus GE] quietly and Benson 2 discreetly in bribery, blackmail, and manipulation to maintain and consoled et [their] power† (Miller 81). Through Fitzgerald depiction of these mutually corrupt groups, h e makes the parallel between the unrealized corruption of West and East Egg and the Unit deed States' blindness to this fact. In addition, the characters' residence in the setting directly relate to their set o f values.For example, both Nick Caraway and Jay Gatsby (who live in West Egg) strong lay desire the acquisition of wealth. Nick is a stock broker, and Gatsby gains money by apart captivating in â€Å"every sort of illegal mischief, some of which is so dangerous that people are afraid t o talk about it† (Foster 146). These char acters represent the people in America who were new lay rich and achieved success through their strong desire for money. In contrast, character RSI such as Tom and Daisy Buchanan (from East Egg) represent the values of those with establishes d wealth: In their selfishness they lack compassion for others.When Gatsby dies at the end oft he book, â€Å"the only . Are his father, Nick, a postman, a handful of servants, and the o mourners welled man who at the first party had admired the library' (Foster 141). But Tom and Daisy choc SSE to leave Long Island behind rather than attend his funeral. Although it is unlikely that Tom loud go to his rival's funeral navy, he also lacks â€Å"a series of virtues .. . In the America of w which [he] is paradigmatic, such as vitality, efficiency, loyalty, and the necessity of a realize able dream† (Lena 40).Even though people in East Egg do not have the strong desire for wealth lie eke those in West Egg, they exhibit a different face of corr uption that is no less immoral. By giving g these traits to his characters, Fitzgerald depicts America's people as either greedy for wealth or lacking in common values. Benson 3 The geography and characters portrayed in the book reveal Fitzgerald depict ion off irrupt America through the concept of â€Å"old wealth† and â€Å"new wealth. † Throw ugh the book's geography, the author represents the separation of these groups in a clear w ay and describes the rivalry between them.

The Holocaust Of The Fields Essay - 1884 Words

The documentary Rape in the Fields follows several personal accounts of women working as farmers, who have been sexually assaulted and raped in their work place. These migrant women work in the fields and packing plants of America and have suffered incredible injustice and sexual violence against them at their jobs. This film highlights their struggle for justice and the hardships they face as undocumented women, fighting to remain employed and provide for their loved ones in a work place of abuse and maltreatment. There is an obvious power structure within the agriculture industry in this country. Female farmers are powerless especially compared to farm owners and supervisors. The women who are undocumented essentially don’t have a voice. Many of the female farmers throughout the film were raped and sexually abused by their supervisors, bosses, employers and even fellow co- workers. They were desperate to keep their jobs and make a living for their families so they did not speak out against the violence they suffered. Getting sexually assaulted and harassed was the price to pay in order to keep their jobs and stay in this country. The women were seen as sexual objects and property by their perpetrators. This signifies the powerlessness and the hopelessness of their situation. In contrast, those who held power were their bosses, supervisors and farm owners. They knew how hopeless the female workers were and completely took advantage of that. After all, rape is about power,Show MoreRelatedVisit The Saint Louis Holocaust Museum For My Independent Field Trip964 Words   |  4 Pages I chose to visit the Saint Louis Holocaust Museum for my independent field trip on April 6, 2016 to get out of my typical comfort zone and learn about a specific group of people that endured the largest genocide in recorded history. 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Discontentment in William Shakespeare´s Hamlet - 899 Words

The villain and the hero in any plot are basically the same person. The only difference is that the hero settles for less and is content with what he has and the villain always desires more and is discontent with his life. Many people are discontent whether it be from not having enough money, not strong enough relationships, or imperfect lifestyles. Hamlet is discontent with his life and always asking and scheming for more. The constant stream of wanting more eventually dries up and Hamlet is left with nothing but bitter death and destruction. William Shakespeare Hamlet to represent the discontentment and how never settling for anything and always searching for more instead of being content leads to self destruction. Each character gets caught up in their mental despair that tears them apart from the inside out. Being a prince and having a kingdom to reign over, Hamlet desires to be the hero and the great leader of his kingdom. After his fathers death, His charmed life suddenly feels dull and grey and Hamlet’s sense of control is thrown off. His strong craving for redemption causes him to see blindly when he is approached by his phantom father. Instead of weighing the consequences and benefits of the ghost’s word Hamlet automatically believes that the only way to save the day and get the glory is to kill his uncle. Hamlet’s one track mind causes him eternal grief and despair from the very start of the play all because he blindly follows the first opportunity he