Exam (elaborations)
MHA 706 Module 3 (LSUS MHA 706 Ratio)
- Course
- Institution
MHA 706 Module 3 (LSUS MHA 706 Ratio)
[Show more]
Seller
Follow
denicetho
Content preview
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
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller denicetho. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.37. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now