Exam (elaborations)
MHA 706 Module 3 (LSUS MHA 706 Ratio)
- Module
- Healthcare Finance MHA 706
- Institution
- Healthcare Finance MHA 706
MHA 706 Module 3 (LSUS MHA 706 Ratio)
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MHA 706 Module 3 (LSUS MHA 706 Ratio)Ratio Analysis - CORRECT ANSWER-technique used in financial condition
analysis
Financial ratio analysis - CORRECT ANSWER-combines values from the
financial statements to create single numbers that facilitate comparisons
Profitability ratio - CORRECT ANSWER-answers the question- is the business
generating sufficient profits
Liquidity ratio - CORRECT ANSWER-can the business meet its cash obligations
or debts
Debt management ratio - CORRECT ANSWER-answers whether the business is
using the right mix of debt and equity
Asset Management - CORRECT ANSWER-looks at whether the business has
the right amount of assets for the patient volume that it has.
Total margin - CORRECT ANSWER-net income /total revenue
Operating margin - CORRECT ANSWER-operating income/operating revenue
ROA - CORRECT ANSWER-net income/ total assets
ROE - CORRECT ANSWER-net income/ total equity
Return on assets - CORRECT ANSWER-for every dollar that we invested in
assets, the hospital generated about $__ in net profit.
Return on equity - CORRECT ANSWER-for every dollar invested by the owners
or the community in this case, the hospital is generating about $__ in net profit.
With the debt ratio - CORRECT ANSWER-the higher the number it's worse. So
you want lower values. While in the times interest earned, higher are better.
, FA turnover - CORRECT ANSWER-total revenue (net operating + nonoperating)/
net fixed assests
TA turnover - CORRECT ANSWER-total revenue (net operating + nonoperating)/
total assets
Days in patient accounts receivable - CORRECT ANSWER-Net patient accounts
receivable/(net patient service revenue/365)
when we look at the fixed asset and total assets turnover, - CORRECT
ANSWER-higher values are good
when it comes to the days in patient accounts receivable, - CORRECT
ANSWER-lower values are good
Dupont analysis - CORRECT ANSWER-summarizes and highlights a business's
financial condition
total asset turnover - CORRECT ANSWER-is looking at asset utilization or
efficiency.
the equity multiplier - CORRECT ANSWER-is a measure of how much that the
hospital organization is using
Operating indicator analysis - CORRECT ANSWER-analysis involves the use of
operating data (as opposed to financial statement data) to try to explain a
business's financial condition
Operating indicators can be grouped into categories such as: - CORRECT
ANSWER-◦Profit indicators
◦Price indicators
◦Volume (utilization) indicators
◦Length-of-stay indicators
◦Intensity-of-service indicators
◦Efficiency indicators
◦Unit cost indicators
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