St. Mary Financial and Operating Indicator Analysis Report

St . Mary Financial and Operating Indicator Analysis Report

Executive summary : St . Mary 's is a not-for-profit inner city community hospital . Its financial health started declining during late 1980s . To heal the financial condition of the hospital , Mr . Charles Windsor was appointed as CEO in 1989 . He had prior experience in hospital administration . After joining the board , I reviewed the summary of financial statements of St . Mary . After doing a thorough research and a very detailed analysis , I am delighted to present my opinion on the financial health of St . Mary 's p

Profitability : I guess Mr . Windsor did a fairly good job and brought the operating margin from 30 .24 in 1990 to enviable 4 .81 in 1993 . Increase in gross profit from -24 .65 in 1990 to 7 in 1993 and dramatic rise in return on equity from -69 .62 in 1990 to admirable 14 .88 means now we can invest the surplus funds to improve the facilities in the hospital

Liquidity : Mr . Windsor is credited with keeping the liquid cash for the short term needs of the business . However , there is no dramatic increase in liquid cash . Mr . Windsor has acted prudently while determining the liquid cash . This will keep the shareholders happy as the resources will be put to right use to reap the benefits

Efficiency : The indicate a problem with one or more of the asset categories composing is one...