Reference no: EM132206276
To make informed decisions and achieve strategic goals, health care leaders must carefully analyze an organization's financial position. A ratio analysis, for example, may impact decisions for strategic initiatives such as expansions, consolidations, mergers, and acquisitions. For this Assignment, you calculate financial ratios and consider their implications for organizations.
To prepare:
Review the document attached. Examine the financial data for the health care organizations in each scenario.
Note: The Assignment should show effective application of triangulation of content and resources in your conclusion and recommendations.
The Assignment
Using the scenarios and financial data provided, calculate financial ratios and evaluate their implications on organizational decision making.
Assignment: Financial Analysis
To make informed decisions and achieve strategic goals, healthcare leaders must carefully analyze an organization’s financial position. A ratio analysis, for example, may impact decisions for strategic initiatives such as expansions, consolidations, mergers, or acquisitions. For this Assignment, you calculate ratios and consider their implications for organizations.
Scenario 1: ABC Hospital
The Assignment
Explain which of the two options you would recommend to the CEO. You may only select one option. Support your position and show your calculations.It is essential that you use at least two different financial ratio calculations.
Scenario 2: Serenity Health Care
The Assignment
As a board member, calculate Hall Healthcare System’s current ratio and acid ratio to determine whether you support your CEO’s decision to acquire Hall.Support your position and show your calculations.
Current ratio = Current assets / Current liabilities
Acid ratio = Total current assets less inventory / Total current liabilities
Scenario 3: Montgomery Home and Community-Based Services
The Assignment
The CEO has presented her proposal and financial information to the board of directors, and they have advised her that they are in full support of her strategy if the program is a benefit to the community and if the organization can recoup its investment in three years.Based on the information presented in the scenario, calculate the two analyses below and explain their implications.
1. Perform the break-even analysis to determine how many seniors would need to have full monthly membership and pay for breakfast and lunch for Montgomery Home and Community-Based Services to cover its monthly expenses.
Break-even volume = Total fixed costs / (Average charge per client – Average variable cost per client)
2. Calculate the payback period to determine how long it will take for the organization to recover its initial investment of establishing the senior multipurpose center.
Payback period = A + (B/C)
Attachment:- Assignment -Financial Analysis.rar