Financial Ratio Analysis : Financial Ratios Analysis

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UNIVERSITY OF HOUSTON CLEAR-LAKE HADM 5233: FINANCIAL MANAGEMENT II ASSIGNMENT: FINANCIAL RATIO ANALYSIS UHCL Honesty Code “I will be honest in all my academic activities and will not tolerate dishonesty.” Uday Sekhar Reddy Mareddy Student ID: 1409342 Ratios 2015 2014 2013 Benchmark Beds in services 60 60 60 121 Beds in services in this hospital are same for last three years but the standard benchmark which is 121 is…show more content…
Capital structure: Ratios 2015 2014 2013 Benchmark Average age of plant 19.9 26 23.7 10.6 Average age of plant for the hospital for all the three years were considerably higher than the benchmark with 2014 being the highest value but the trend varies among years. From 2013 through 2014, there was an increase in the value of average age of plant but from 2014 to 2015 there was a decline in the age of plant indicating that hospital has investment on new fixed assets from period 2014 to 2015. Net PP&E per bed $ 158,638.7 $ 160,513.2 $ 131,296 $ 215,402 For all three years, net PP&E per bed values are below the standard benchmark and highest value is seen in 2014. As far as trend for net PP&E per bed, there was an increase from 2013 to 2014 but then the value dropped from 2014 to 2015. Debt per bed $ 207,629.3 $ 126,679 $110,879.3 $ 164,555 Debt per bed for 2013 and 2014 were below the standard benchmark which is a good thing, but from 2014 to 2015 there was a tremendous incline in the value which made to exceed the benchmark. Debt per bed for 2015 is highest when compared to other two years. Long term debt to total assets 5% 7% 10% 29% Long term debt to total assets percentage from 2013 to 2015 follows a gradual declining trend, but for all three years the values are below the benchmark which suggests that hospital is in favorable position considering long term debt. Debt

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