Benefits of Ratio Analysis

Write a 4-6 page paper in which you discuss the value of ratio analysis in decision making for health care organizations. Complete the following in your paper:

Discuss the meaning of ratio analysis in healthcare.

Pick only one (1) ratio from EACH major group from the financial statements. (e.g. Current ratio, ROE, Debt to equity, ALOS)

• Major Groups:
  • Liquidity ratios (Current ratio, Days Cash-on-Hand, Quick Ratio)
  • Profitability ratios (ROE, ROA, Total Margin, Operating Margin)
  • Leverage/Capital Structure Ratios (Debt ratio, Equity ratio, Debt to Equity Ratio)
  • Nonfinancial Ratios (Occupancy rate, payer mix, ALOS, Expense per discharge, FTE per bed, HMO penetration)

For each ratio you picked, answer the following questions on that ratio:

• • What is the meaning of each ratio?
  • Evaluate the meaning of the ratio related to the financial health of the health care organization. Show the calculations.
  • Explain the factors that affect the results related to the financial health of the organization.

Format your paper consistent with APA guidelines.

Provide a minimum of two (2) cited sources in your paper.

Properly cite in APA format.

This is due tomorrow by 3pm EST.