Financial and Operating Indicator Analysis Report

Running Head : Financial and operating Indicator analysis report

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Introduction

The validation in hiring of Charles Windsor as the CEO St . Mary 's hospital can only be ratified through evaluation and analysis of its projected financial and operating indicators . Consequently , the performance of this hospital under the management of its new CEO should focus on the future of the hospital in terms of its current and the past state of financial stands . However , if a margin of financial visibility was to be undertaken

, the retention of Charles as the CEO welcomes perhaps a future prosperity of the hospital . Ever since his appointments in 1989 , the hospital embraced trickle down affects of his good management which has provided it with desirable and expanding state of its financial parameters . It can be concluded that , evident of what is described by its financial indicators ever since 1990 to 1993 , the future of the hospital would perhaps wage expanded financial horizons if the same management trend was followed

Comparative relationship between the national and St . Mary 's financial and operating indicators

Comparatively , there is a broad discrepancy between the financial and operating indicators of the national benchmarks and that of St . Mary 's hospital . The relationship of these indicators is synonymous to comparative financial ratios , which would compare the financial and performance level of both the national benchmarks and the St . Mary 's hospital (Edward , 2002 ,

. 104

Broadly , they can be sub-grouped into four (4 ) basic financial ratios indicators which include the profitability , liquidity , efficiency and capital structure ratios . At one level , profitability ratios would be tools for measuring the ability of the hospital in generating profits Though a non-profit generating hospital however , profitability ratios would evaluate the susceptibility of the hospital towards future operations from positive profit returns from its operations (Michael 1986 ,

. 61 ) Liquidity ratios would provide the most basic information on whether the hospital meets its financial obligations of a short term process . Efficiency ratios would imply the level with which the hospital can utilize its available level of assets . Capital structure ratios or financial leverage ratios would be used to measure the level of long term state of solvency of this hospital

Though wide difference between the national benchmark and St . Mary hospital financial and operating indicators exists between 1990 and 1993 , the validation against retention of Mr . Charles would provide no financial logics . At one level , the national benchmark indicators between 1990 and 1993 show a general state of stable financial influx indicating that the national healthcare industry has a strong state of functionality . Its profitability indicators as provided by the levels of operating margins , return on equity and gross Margin depict a wide scope of stability across the period . This is an indication that the national industry depicts a general positive ability towards profit generation (Edward , 2002 ,

. 79 . Elsewhere , its liquidity indicators as provided by both current and quick ratios is also stable across the period ? This implies that the industry...