MHA 706 Module 3 (LSUS MHA 706 Ratio) – Q&A
Ratio Analysis Correct Ans - technique used in financial condition
analysis
Financial ratio analysis Correct Ans - combines values from the
financial statements to create single numbers that facilitate comparisons
Profitability ratio Correct Ans - answers the question- is the
business generating sufficient profits
Liquidity ratio Correct Ans - can the business meet its cash
obligations or debts
Debt management ratio Correct Ans - answers whether the
business is using the right mix of debt and equity
Asset Management Correct Ans - looks at whether the business has
the right amount of assets for the patient volume that it has.
Total margin Correct Ans - net income /total revenue
Operating margin Correct Ans - operating income/operating
revenue
ROA Correct Ans - net income/ total assets
ROE Correct Ans - net income/ total equity
Return on assets Correct Ans - for every dollar that we invested in
assets, the hospital generated about $__ in net profit.
Return on equity Correct Ans - for every dollar invested by the
owners or the community in this case, the hospital is generating about $__
in net profit.
With the debt ratio Correct Ans - the higher the number it's worse.
So you want lower values. While in the times interest earned, higher are
better.
Ratio Analysis Correct Ans - technique used in financial condition
analysis
Financial ratio analysis Correct Ans - combines values from the
financial statements to create single numbers that facilitate comparisons
Profitability ratio Correct Ans - answers the question- is the
business generating sufficient profits
Liquidity ratio Correct Ans - can the business meet its cash
obligations or debts
Debt management ratio Correct Ans - answers whether the
business is using the right mix of debt and equity
Asset Management Correct Ans - looks at whether the business has
the right amount of assets for the patient volume that it has.
Total margin Correct Ans - net income /total revenue
Operating margin Correct Ans - operating income/operating
revenue
ROA Correct Ans - net income/ total assets
ROE Correct Ans - net income/ total equity
Return on assets Correct Ans - for every dollar that we invested in
assets, the hospital generated about $__ in net profit.
Return on equity Correct Ans - for every dollar invested by the
owners or the community in this case, the hospital is generating about $__
in net profit.
With the debt ratio Correct Ans - the higher the number it's worse.
So you want lower values. While in the times interest earned, higher are
better.
