Assessment #4: Ratio Analysis 

• 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.

You can also utilize the Help4UHMO Organization financial statements or a real-life health care organization to evaluate by researching their financial statements. You can use the organization from Assessment #2.

• Format your paper consistent with APA guidelines.
• Provide a minimum of two (2) cited sources in your paper.