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Feb 20, 2024

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GROUP PROJECT HCOFA- DESCRIPTION AND FINANCIAL ANALYSIS REPORT 0 Week 11 Assignment 6: Group Project HCOFA- Description and Financial Analysis Report Team 5 Alana Gamez Emma Jallah Malika Leach Tameka Owi Aaron Thailla University of Maryland Global Campus HCAD 640 9040: Financial Management for Healthcare Organizations Dr. Leonard Vernick August 1, 2023
GROUP PROJECT HCOFA- DESCRIPTION AND FINANCIAL ANALYSIS REPORT 1 Abstract Tenet Healthcare Corporation is a for-profit healthcare organization built on community care headquartered in Dallas, Texas (Tenet, n.d.). Tenet Healthcare Corporation is a leading health system that continues to evolve and advance in patient care (Tenet, n.d.). Since Tenet Healthcare Corporation is a leading healthcare system, it is critical to understand why they are in that position. Tenet Healthcare Corporation’s financial statements can provide insight into why the organization continues to be a leading healthcare organization and evolve. This report will provide insight into Tenet Healthcare Corporation’s financial standings compared to other similar organizations. Keywords: Financial analysis, financial statements, for-profit, healthcare organization, healthcare system, Tenet Healthcare Corporation
GROUP PROJECT HCOFA- DESCRIPTION AND FINANCIAL ANALYSIS REPORT 2 Introduction (“Introduction” can be removed once the introduction is put in) SWOT/PESTLE Analysis Financial Ratios Financial ratios can provide healthcare organizations with insight into their financial performance over the years, and their financial performance compared to other organizations (“Week 4: Financial Ratio Analysis”, 2023). To assess an organization’s financial performance, its financial statements are needed. The financial statements that are needed are the balance sheet, income statement, statement of changes in equity, and statement of cash flows (Reiter & Song, 2021). With the necessary financial statements, healthcare organizations can conduct a ratio analysis. Ratio analysis will combine the data from the financial statements and convert it into numbers that measure aspects of the financial condition (Reiter & Song, 2021). Financial ratios can be grouped into four categories: liquidity, profitability, operating efficiency, and capital structure (“Week 4: Financial Ratio Analysis”, 2023; Reiter & Song, 2021). Each ratio category will have its ratios. Liquidity Ratios Liquidity ratios measure an organization’s ability to meet its short-term debt obligations and pay off its short-term liabilities when they become due (“Week 4: Financial Ratio Analysis”, 2023). Current and acid-test ratios are two ratios that fall under the category of liquidity ratios. The current ratio indicates an organization’s ability to meet short-term debt obligations and measures whether they have enough resources to pay its debt off over the next 12 months (“Week 4: Financial Ratio Analysis”, 2023). To find the current ratio, the current assets, and current liabilities would need to be identified. This information can be
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