excel ratio template

Review the Week 8 Assignment 1 document provided to you by the Instructor. Examine the financial statements from the community hospital. Reflect on how you will use this financial data to calculate and analyze the organization’s financial ratios. Refer to Chapter 4 of Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applications for additional guidance.

The Assignment:

Using the statement of operations and balance sheet for the community hospital, complete the

“Week 8 Ratio Excel Template”.

Healthcare Financial Management and Economics Week 8 Assignment 1 —

Springfield Community Hospital

Assignment 1: Ratio Analysis

It is important to understand that when interpreting financial statements, the numbers alone may not provide the whole financial picture of an organization. Instead, you must analyze the statements using ratios, which are then compared to benchmarks across the healthcare industry. For this Assignment, you examine the financial documents for Springfield Community Hospital and analyze the organization’s financial health.

Springfield Community Hospital

Springfield Community Hospital is a small community hospital serving a rural population. The adjusted discharges are 3.30 for the 1st year and 3.10 for the 2nd.

Springfield Community HospitalStatement of Operations (in thousands) for the Years Ended December 31,

2016

and

2017

2016

$21,000 1,000 22,000

ExpensesSalaries and benefitsSupplies and other expensesDepreciation 2,3002017

$17,000 800 17,800

8,000 5,000 1,900

100 15,000

2,800 2,200

5,000 $5,000

RevenuesNet patient service revenueNet assets released from restriction

Total operating revenues

General servicesTotal operating expenses

Operating income Non-operating income

Excess of revenues over expenses Increase (decrease) in net assets

200 20,500

1,500 3,500

5,000 $5,000

12,000 6,000

© 2015 Laureate Education, Inc.

Page 1 of 3

Springfield Community HospitalBalance Sheet (in thousands) for the Years Ended December 31, 2016 and 2017

Current assets Cash and cash

equivalentsNet patient receivablesInventory 900

Total current assets

Non-current assets Plant, property, and equipment

Gross plant, property, and equipment

(less accumulated depreciation)

Net plant, property, and equipment

Board-designated funds

Total assets

Current liabilities Accounts payable Accrued expenses

Total current liabilities

Long-term liabilities Bonds payable

Total long-term liabilities Net assets

Total liabilities and net assets

To prepare for this Assignment:

4,000 5,500

2016

$600

25,000 (18,000) 7,000

18,000 30,500

2,500 850 3,350

5,500 5,500

21,650 $30,500

2017

$400

3,500 800 4,700

23,000 (17,000) 6,000

9,000 20,250

2,000 900 2,900

7,500 7,500

9,850 $20,250

Examine the financial statements from Springfield Community Hospital. Reflect on howyou will use this financial data to calculate and analyze the organization’s financialratios. Refer to Chapter 4 of Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applicationsfor additional guidance.

Week 8 Assignment 2 Ratio Template
A
B
12/31/20X1
[D/E]
12/31/20X0
[F/G]
(in ‘000)
Ratio
[a]
Current Ratio
Quick Ratio
Acid Test Ratio
Days in Accounts Receivable
Days Cash on Hand
Average Payment Period (Days)
Operating Revenue per Adjusted Discharge
Operating Expense per Adjusted Discharge
Salary & Benefit Exp. as % of Operating Exp.
Operating Margin
Non-Operating Revenue
Return on Total Assets
Return on Net Assets
Total Asset Turnover Ratio
Fixed Asset Turnover Ratio
Age of Plant Ratio
Long-Term Debt to Net Assets
Net Assets to Total Assets
Numerator
D
E
20X1
20X1
Numerator Denominator
F
G
20X0
20X0
Numerator Denominator