Assignment 2.2: Ratio Analysis

Assignment 2. 2 Ratio Analysis Name explode 1 Enter the information based on your computations. 2011 2010 Benchmark well-off (F), untoward (U), or Approximate (A)? 2011/2010 1. Current ratio 3. 52 2. 59 2. 00 halcyon 2. Days cash on hand 27. 64 18. 10 15. 00 golden 3. Days in A/R 69. 32 76. 59 45. 00 Favorable 4. operate margin 2. 18% 3. 03% 4% untoward 5. retrovert on count additions 5. 08% 7. 13% 4% Unfavorable 6. Return on boodle assets 14. 54% 17. 76% 10% Unfavorable 7. Debt to capitalization 61. 21% 53. 69% 50% Unfavorable 8.Times invade earned 2. 47 3. 36 4. 00 Unfavorable 9. Debt service coverage 1. 28 1. 30 2. 00 Approximate 10. Fixed asset turnover 3. 28 2. 88 3. 00 Favorable 11. allowance and benefit/NPSR 84. 08% 82. 82% 55% Unfavorable 1. Current ratio = Total Current Assets in eternal rest saddlery / Total Current Liabilities in equilibrise sail 2011 2010 $54,306/$15,425 $39,715/$15,315 3. 52 2. 59 2. Days bullion on Hand = Cash and Cash Equival ents from Balance Sheet / (Total Expenses Depreciation Provision for Bad Debts in assertion of trading operations) / 365 011 2010 $12,102/($168,232 $6,405 $2,000)/365 $6,486/($138,394 $5,798 $1,800)/365 $12,102/$159,827/365 $6,486/$130. 796/365 $12,102/437. 88 $6,486/358. 34 27. 64 18. 10 3. Days in A/R = win Patient Accounts Receivable in Balance Sheet / (Net Patient Service Revenue in story of Operations / 365) 2011 2010 $28,509/($150,118/365) $25,927/$123,565/365) $28,509/411. 28 $25,927/338. 53 69. 32 76. 59 4. Operating margin = Operating Income from averment of Operations / Total Revenues in Statement of Operations 2011 2010 3,747/$171,979 $4,330/$142,724 .0218 x snow . 0303 X 100 2. 18% 3. 03% 5. Return on total assets = Net Income in Statement of Operations / Total Assets in Balance Sheet 2011 2010 $7,860/$154,815 $8,206/$115,101 .0508 x 100 . 0713 x 100 5. 08% 7. 13% 6. Return on net assets = Net Income in Statement of Operations / Net Assets in the Balance Sheet 2011 2010 $7,860/$54,068 $8,206/$46,208 .1454 x 100 . 1776 x 100 14. 54% 17. 76% 7. Debt to capitalization = Long-term Debt in Balance Sheet / Long term debt + Net Assets in Balance Sheet 2011 2010 85,322/($85,322 + $54,068) $53,578/($53,578 + $46,208) $85,322/$139,390 $53,578/$99,786 .6121 x 100 . 5369 x 100 61. 21% 53. 69% 8. Times interest earned = (Net Income + Interest) in Statement of Operations / Interest in Statement of Operations 2011 2010 ($7,860 + $5,329)/$5,329 ($8,206 + $3,476)/$3,476 $13,189/$5,329 $11,682/$3,476 2. 47 3. 36 9. Debt service coverage = (Net Income + Interest + Depreciation) in Statement of Operations/ Interest + Principal Payments ($10 million presume for this assignment) 2011 2010 ($7,860 + $5,329 + $6. 05)/$15,329 ($8,206 + $3,476 + $5,795)/$13,476 $19,594/$15,329 $17,477/$13,476 1. 28 1. 30 10. Fixed asset turnover = Total Revenues in Statement of Operations / Net Property and Equipment 2011 2010 $171,979/$52,450 $142,724/$49,549 3. 28 2. 88 11. Sa lary and benefits as a % of net patient revenue = Salaries and Benefits in Statement of Operations / Net Patient Service Revenue in Statement of Operations 2011 2010 $126,223/$150,118 $102,334/$123,565 .8408 X 100 . 8282 x 100 84. 08% 82. 82% Part 2 Type your memo to senior management below