Ratio Analysis Organizations use financial statements and ratio analysis assess financial performance viability. The ratio analysis are used to identify trends and to perform organizational comparison (financial) with other companies within same industry. Ratio analysis, using data reported on the financial statements, are divided into five major categories: common size, liquidity, solvency, efficiency, and profitability. This paper will assess the financial stability of John Hopkins Hospital (JHH) using the five ratio analysis. Overview: Johns Hopkins Hospital Johns Hopkins Hospital is a teaching and biomedical research health care facility located in Baltimore, Maryland. Founded in 1889, JHH is named after the renowned philanthropist and visionary enthusiast Johns Hopkins, who provided the initial funds for construction. JHH was the first hospital to incorporated teaching, learning, patient care, and research into the health care model. Today, JHH is billion-dollar health care system and is known (nationally and internationally) for distinction in health care excellence, teaching, and research. Ratio Analysis The financial statements from Johns Hopkins Hospital (JHH) were used to calculate and analyze the meaning of the financial health of the organization from the years 2010-2012 (Appendix A). The following five major types of ratios were used: common size, liquidity, solvency, efficiency, and profitability Common size ratios. According to Finkler, Kover, and Jones (2007), “The goal of common sizing is to make an organization comparable to other organizations of different sizes… by putting everything into perspective based on organizational size,” (p. 117). These ratios alson can be used used by the organization ... ... middle of paper ... ...provide information about an organizational financial stability and challenges. A health care organization, such as JHH, can evaluate financial statements and ratio analysis to benchmark performance, address financial challenges and initiate strategies to maintain financial solvency while providing health services to patients, family members, and the community Works Cited Finkler, S. A., Kovner, C. T. & Jones, C. B. (2007). Financial management for nurse managers and executives. (3rd ed). St. Louis, MO: Saunders Elsevier. PricewaterhouseCoopers LLP. (2011). . Retrieved from http://www.hscrc.state.md.us/documents/Hospitals/ReportsFinancial/Audited/FY2011/JohnsHopkinsHospital-AFS2011.pdf PricewaterhouseCoopers LLP. (2012). . Retrieved from http://www.hscrc.state.md.us/documents/Hospitals/ReportsFinancial/Audited/FY2012/JohnsHopkinsHospital-AFS2012.pdf
Ratio analysis are useful tools when judging the performance of a company by weighing and evaluating the operating performance (Block-Hirt). There are 13 significant ratios that can separate by four main categories, profitability, asset utilization, liquidity and debt utilization ratios. The ratio analysis covered here consists of eight various ratios with at least one from each of these main categories. These ratios were used to compare and contrast the performance of Verizon versus AT& T over the years 2005 and 2006.
John Hopkins Hospital was founded by John Hopkins a philanthropist and a Quaker by faith in 1867 and endowed in 1873. He dedicated his life and finances approximately $7,000,000 in cash to building a teaching hospital and a university named after him with designations of uniting functions of patient care with education and research. The John Hopkins hospital was officially opened on May 7, 1889. Before Mr. Hopkins died in 1973, he had committed himself to the principle of “united we stand and divided we fall” and selected board of trustees for the hospital and the university whom he entrusted with tasks and responsibilities to carry out his vision. On March 10, 1873, he put in black and white that the hospital must provide for “the indigent sick of the city of Baltimore without regard to sex, age, or color who may need surgical or medical treatment”. In his letter he also specified that the school of nursing and medicine must be established in conjunction with the hospital. Looking at it today, the John Hopkins hospital has evolved into one of the largest teaching hospital in the country. It includes more than 12 smaller hospitals and medical centers affiliated to the main hospital in Baltimore 226 clinical services 977 licensed beds and 37 building in the State of Maryland. The John Hopkins Hospital and School of Medicine are the founding institutions of modern American Medicine and the birthplace of so many traditions of medicine including ward rounds, residency programs, and house staff. Many medical specialties including neuroscience by Harvey, cardiac surgery by Blalock, urology, endocrinology pediatrics, and child psychiatry by Kanner were founded at this hospital....
The increase in healthcare costs have required health care executives to develop strategic financial plans and improve their capital planning processes in order, to make efficient decisions within a timely manner. As a result, it is important that the health care executives manage the debt portfolio in order, to remain successful and competitive within the steadily changing healthcare industry. Therefore, the financial status of Trinity Health System located in Steubenville, Ohio was analyzed to determine any recommendations for financial improvements.
The first method we will review is the accounting method. Through this accounting approach we will analyze specific ratios and their possible impact on the company's performance. The specific ratios we will review include the return on total assets, return on equity, gross profit margin, earnings per share, price earnings ratio, debt to assets, debt to equity, accounts receivable turnover, total asset turnover, fixed asset turnover, and average collection period. I will explain each ratio in greater detail, and why I have included it in this analysis, when I give the results of each specific ratio calculation.
Finkler, S. A. & McHugh, M. (2008). Budgeting concepts for nurse managers. (4th Ed.). Philadelphia: W.B. Saunders.
I have chosen a Malcolm Baldrige National Quality Award (MBNQA) recipient named Memorial Hermann Sugar Land Hospital (MHSL) formally known as Fort Bend Hospital before it was acquired by Memorial Hermann Health System (MHHS) in 1999, my objective will be to describe and analyze the history and structure of the organization, discussing MHSL management and organizational structure, leadership, their use of innovative technology, quality initiatives, market share and market strategies, any ethical or legal considerations, strategic planning for Memorial Hermann Sugar Land Hospital (MHSL) a not for profit community hospital which is a 149 bed , in one of the fastest expanding and most diverse counties in the United States located in Fort Bend County,
Furthermore, a SWOT analysis was conducted to determine the strengths, weaknesses, opportunities, and threats of West Florida Regional Medical Center (Hill, Jones, & Schilling, 2004, p. 17). Although there were a number of quality control issues at West Florida Regional Medical Center, the hospital did however have several strengths. West Florida Regional Medical Center has a strong support group including the military, government, business, and education (Rakich, Longest, & Darr, 2010, p. 318). Another major supporter involve include John Kausch, HCA’ CEO himself; not only is he fully involved in the whole process, he also possesses good management skills (Rakish et al., 2010, p. 317). Dr. Batalden, another knowledgeable individual who understand the positive
HCA, after following a conservative financial policy since its establishment, has entered the new decade preparing to make some changes in order to realign their financial strategy and capital structure. Since establishment, HCA has often been used as a measure for the entire proprietary hospital industry. Is it now time for the market to realign their expectations for the industry as a whole? HCA has target goals which need to be met in order to accomplish milestones in the future. The problem arises as to which area holds priority to the company. HCA must decide how the key components of their financial strategy and policy should my approached in order to meet their future goals.
In this case, the reader learns that liquidity is a better than average. The ratio and cash on hand have been better than 2013 from the past years. Moreover, it shows that the hospital has a higher ability to meet its cash obligation because it has more security compared to other hospitals. Funding allows hospitals to control funds and limit investments. Not-for-profit organizations help provide more services and margin of safety. Therefore, creditors look for a margin of safety so that the community that financed a small portion of total financing can be returned to the owners by leveraging. Capitalization ratio measures the funds that were borrowed and the assets that have been used. The coverage ratio measures the number that time they fixed financial charges. The time's interest earned ratio shows the ability of the hospital to meet
The Johns Hopkins Health System Corporation employs more than 20,000 people yearly. Upon joining Johns Hopkins Health System, one becomes part of a diverse organization devoted to its patients, their families, the communities served and our employees. Patients are the focus of everything that is done at The Johns Hopkins Health System. From our beginnings in 1889 to the opening of our most advanced patient facilities in 2012, our mission to advance patient care, education, and research, continues to change the course of modern medicine (AllCountyJobs, 2015).
... J. J. & Baker, R. W. (2014). Health care finance: Basic tools for nonfinancial managers (4th ed.). Burlington, MA: Jones & Bartlett Learning
The Johns Hopkins Health System Corporation provides health care services. It operates acute care hospitals, community teaching hospital, geriatric care center, home care center, and outpatient care center in Maryland. The company provides services in the areas of ear, nose, and throat; eyes; gynecology; cancer treatment; children’s care; and urology. The company was founded in 1986 and is based in Baltimore, Maryland (Bloomberg Business, 2015; Johns Hopkins Medicine, 2015). For more than a century, Johns Hopkins Health System Corporation has been recognized as a leader in patient care, medical research and teaching. Today, Johns Hopkins Medicine is known for its excellent faculty, nurses and staff specializing in every aspect of medical care.
This is an important issue because non-governmental organization like Partners in Health change the world for the better by providing healthcare to the people and communities in need. Partners in health started helping people in Haiti and later expanded their cause to around the world. Reviewing the annual reports, we can see that the amount of donations has drastically dropped since 2008 to the 2012. There is no really concrete reason as to why the donation have decreased, but we suspect that it is most likely due to the financial crisis. We think it is important to address the financial situation that our organization and other non-governmental organizations face and figure out ways to minimize operational costs as much as possible so we can spend it more on providing necessary healthcare or services and to keep an organization like ours in operation.
Any successful business owner or investor is constantly evaluating the performance of the companies they are involved with, comparing historical figures with its industry competitors, and even with successful businesses from other industries. To complete a thorough examination of any company's effectiveness, however, more needs to be looked at than the easily attainable numbers like sales, profits, and total assets. Luckily, there are many well-tested ratios out there that make the task a bit less daunting. Financial ratio analysis helps identify and quantify a company's strengths and weaknesses, evaluate its financial position, and shows potential risks. As with any other form of analysis, financial ratios aren't definitive and their results shouldn't be viewed as the only possibilities. However, when used in conjuncture with various other business evaluation processes, financial ratios are invaluable. By examining Ford Motor Company's financial ratios, along with a few other company factors, this report will give a clear picture of how the company is doing now and should do in the future.
Ratios traditionally measure the most important factors such as liquidity, solvency and profitability, as well as other measures of solvency. Different studies have found various ratios to be the most efficient indicators of solvency. Studies of ratio analysis began in the 1930’s, with several studies of the concluding that firms with the potential to file bankruptcy all exhibited different ratios than those companies that were financially sound.