# question below 64

Assessment #4: Ratio Analysis (15%)

• 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)
• Discuss one (1) ratio (from EACH major group) using the following criteria:
• 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.

You can also utilize the sample Help4UHMO Organization financial statements (located under week 6) or a real-life health care organization to evaluate by researching their financial statements.

• Format your paper consistent with APA guidelines.
• Provide a minimum of two (2) cited sources in your paper. Properly cite in APA format.

You will be graded base on the following rubric:

 90-100 80-89 70-79 50-69 Points The student demonstrates a thorough understanding of the ratios and their applicability to the organization being analyzed. The student demonstrates a reasonable but not complete understanding of the ratios measured and their applicability to the organization being analyzed. The student demonstrates a limited understanding of the meaning of the ratios chosen and their applicability to the organization being analyzed. The student does not demonstrate an understanding of the meaning of the ratios or how they can be used to assess the organizationâ€™s financial condition. The student demonstrates a thorough understanding of the calculations of the ratios and their applicability to the organization being analyzed. The student demonstrates a reasonable but not complete understanding of the calculations of the ratios and their applicability to the organization being analyzed. The student demonstrates a limited understanding of the calculations of the ratios and their applicability to the organization being analyzed. The student does not demonstrate an understanding of the calculations of the ratios or how they can be used to assess the organizationâ€™s financial condition. The student draws accurate conclusions for each of the ratios and for the overall financial health of the organization. The student draws some accurate conclusions for each of the ratios and for the overall financial concepts of the organization. There are a few mistakes The student draws few accurate conclusions for each of the ratios and for the overall financial health of the organization. There are several mistakes The studentâ€™s conclusions for each of the ratios are inaccurate and the overall conclusion on the financial health of the organization is not valid. Writing quality: Writes clearly, concisely, and with few errors. Easy to understand. Writing quality: Writes with some errors but the paper can be readily understood. Writing quality: paper includes numerous errors. Requires some effort to understand. Writing quality: The paper is poorly written and is difficult to understand.