course material

1. Prior to completing this assignment, review Chapter 10 and 12 in your
Prior to completing this assignment, review Chapter 10 and 12 in your course text.You are a
mid-level manager in a health care organization and you have been asked to prepare a
report, with appropriate exhibits, for the senior financial officer.Discuss the roles played by
financial ratios in general and analyze the commonly used financial ratios by
categories.Additionally, select a local hospital and compare its financial ratios for the most
recent three years against the national norms for this type of institution. Include analytical
comments and how the organization compares to the national norms as well as any
suggestions as to how results could be improved.Your paper must include an introduction,
thesis, and conclusion. Your paper must be four double-spaced pages in length (excluding
title and reference pages) and formatted according to APA style as outlined in the Ashford
Writing Center. Utilize three scholarly and/or peer-reviewed sources (excluding the course
text) that were published within the last five years. Cite your sources within the text of your
paper and provide complete references for each source used on the reference page. Expert
Solution PreviewIntroduction:Financial ratios are crucial tools for assessing the financial
health and stability of healthcare organizations. These ratios analyze the financial data of an
organization and assist in determining its long-term viability. Medical college students must
be aware of financial ratios and their significance in assessing the financial health of a
healthcare organization. This assignment aims to discuss the roles played by financial
ratios, analyze commonly used financial ratios by categories, and compare the financial
ratios of a local hospital against national norms.Roles Played by Financial Ratios:Financial
ratios are used to assess the financial health of an organization. These ratios help in
determining the organization’s profitability, liquidity, asset management efficiency, and
overall financial stability. Financial ratios also help in identifying financial weaknesses and
areas that need improvement.Commonly Used Financial Ratios by Categories:Financial
ratios can be categorized as liquidity ratios, asset management ratios, debt management
ratios, and profitability ratios. Liquidity ratios measure an organization’s ability to meet its
short-term financial obligations, such as paying bills and salaries. Asset management ratios
measure the efficiency of an organization in utilizing its assets to generate revenue. Debt
management ratios measure the company’s ability to manage its debt and financial
leverage. Profitability ratios measure profits in proportion to sales, assets, or equity.Local
Hospital Financial Ratios:When comparing the financial ratios of a local hospital against
national norms, we can obtain information regarding the organization’s financial
performance. It also highlights the strengths and weakness of the organization. For

2. example, if the local hospital’s liquidity ratio is high, it indicates that the organization has
enough cash to meet its short-term financial obligations. In contrast, a low liquidity ratio
indicates the opposite.Analytical Comments and Suggestions for Improvement:After
analyzing the financial ratios of the local hospital, it is essential to provide analytical
comments regarding the organization’s financial situation. By comparing the financial ratios
to national norms, we can highlight the institution’s strengths and weaknesses. We can also
suggest strategies to improve the organization’s financial performance, such as reducing
debt or increasing revenue streams.Conclusion:Financial ratios are crucial tools for
evaluating the financial health and stability of healthcare organizations. Medical college
students must be aware of financial ratios and their significance in assessing a healthcare
organization’s financial health. Conducting a financial analysis of a local hospital and
comparing it with national norms provides valuable insights into the organization’s
financial performance. The analysis and recommendations provided based on this
evaluation can help the organization improve its financial stability and overall financial
performance.#Prior #completing #assignment #review #Chapter