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  • 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 one (1) ratio from each major group from the financial statements.
    • 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 the ratio and provide examples with calculations
  • Evaluate the meaning of the calculations related to the financial health of the organization.
  • Explain the factors that affect the results.
  • Format your paper consistent with APA guidelines.
  • Provide a minimum of two (2) cited sources in your paper.

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