HCS 405 Eight Basic Ratios Used in Health Care
Eight Basic Ratios Used in Health Care
Carrie "Shellie" Cobbs
Health Care Financial Accounting
HCS 405
Robert Hammer
November 10, 2013
Eight Basic Ratios Used in Health Care
Solvency Ratios
5. Debt Service Coverage Ratio (DSCR) is figured Unrestricted Net Assets + Interest + Depreciation / Maximum Annual Debt Service
DSCR 2009 (Unaudited)
627 + 3708 + 36,036 = 40,371
40,371 / 14,609 = 2.76
DSCR 2008 (Unaudited)
15,846 + 3597 + 24,955 = 44,398
44,398 / 4,195 = 10.5
DSCR 2009 (Audited)
36,036 + 3,708 + 373 = 40,117
40,117 / 14,609 = 2.74
DSCR 2008 (Audited)
24,995 + 3,597 + 15,846 = 44,438
44,438 / 4,195 = 10.59
Disagree:
Evaluation of the Chief-Executive-Officer (CEO) report to the board is not accurate. Patton-Fuller was more profitable in 2008. Patton-Fuller’s annual debt was less in 2008 and Patton-Fuller’s liabilities almost double in 2009 from 2008. Patton-Fuller is paying more to liabilities and expenses and their revenue is not equal to their expenses. Patton-Fuller was more profitable in 2008.
Liabilities to Fund Balance
6. Liabilities to Fund Balance is figured Total Liabilities / Unrestricted Fund Balances
Liabilities to Fund Balance 2009 (Unaudited)
462,153 / 126,564 = 3.65
Liabilities to Fund Balance 2008 (Unaudited)
213,450 / 335,035 = 0.637
Liabilities to Fund Balance 2009 (Audited)
462,153 / 125,564 = 3.68
Liabilities to Fund Balance 2008 (Audited)
213,450 / 335,035 = 0.637
Disagree:
The Liabilities to Fund Balance shows that Patton-Fuller was more profitable in 2008 than in 2009. The liabilities increase significantly from 2008 to 2009 indicating that Patton-Fuller has increased their expenditures. Patton-Fuller’s net worth also declined tremendously. When analyzing this ratio the lesser the number the better the profitability of the company. Patton-Fuller shows a decrease from 2008-2009 meaning the hospital was not as profitable in 2009 as it was in 2008.
Financial Performance of Patton-Fuller
Patton-Fuller has generated a small net
Carrie "Shellie" Cobbs
Health Care Financial Accounting
HCS 405
Robert Hammer
November 10, 2013
Eight Basic Ratios Used in Health Care
Solvency Ratios
5. Debt Service Coverage Ratio (DSCR) is figured Unrestricted Net Assets + Interest + Depreciation / Maximum Annual Debt Service
DSCR 2009 (Unaudited)
627 + 3708 + 36,036 = 40,371
40,371 / 14,609 = 2.76
DSCR 2008 (Unaudited)
15,846 + 3597 + 24,955 = 44,398
44,398 / 4,195 = 10.5
DSCR 2009 (Audited)
36,036 + 3,708 + 373 = 40,117
40,117 / 14,609 = 2.74
DSCR 2008 (Audited)
24,995 + 3,597 + 15,846 = 44,438
44,438 / 4,195 = 10.59
Disagree:
Evaluation of the Chief-Executive-Officer (CEO) report to the board is not accurate. Patton-Fuller was more profitable in 2008. Patton-Fuller’s annual debt was less in 2008 and Patton-Fuller’s liabilities almost double in 2009 from 2008. Patton-Fuller is paying more to liabilities and expenses and their revenue is not equal to their expenses. Patton-Fuller was more profitable in 2008.
Liabilities to Fund Balance
6. Liabilities to Fund Balance is figured Total Liabilities / Unrestricted Fund Balances
Liabilities to Fund Balance 2009 (Unaudited)
462,153 / 126,564 = 3.65
Liabilities to Fund Balance 2008 (Unaudited)
213,450 / 335,035 = 0.637
Liabilities to Fund Balance 2009 (Audited)
462,153 / 125,564 = 3.68
Liabilities to Fund Balance 2008 (Audited)
213,450 / 335,035 = 0.637
Disagree:
The Liabilities to Fund Balance shows that Patton-Fuller was more profitable in 2008 than in 2009. The liabilities increase significantly from 2008 to 2009 indicating that Patton-Fuller has increased their expenditures. Patton-Fuller’s net worth also declined tremendously. When analyzing this ratio the lesser the number the better the profitability of the company. Patton-Fuller shows a decrease from 2008-2009 meaning the hospital was not as profitable in 2009 as it was in 2008.
Financial Performance of Patton-Fuller
Patton-Fuller has generated a small net