Roi and Variance Analysis

Financial ratio analysis is a valuable tool that allows one to assess the success, potential failure or future prospects of the company (Bazley 2012). The ratios are helpful in spotting useful trends that can indicate the warning signs of

The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measured on critical areas such as profitability, its ability to stay solvent, the amount of debt exposure and the effectiveness in resource utilization, is performing financial analysis where a set of ratios provides a snapshot of company performance and future

Clinical business intelligence is a modular and scalable platform that helps the organizations to seamlessly integrate data from multiple clinical and financial system and address the most critical BI and analytical needs. Physicians use the hospital EHR and other clinical IT applications to make decisions and provide excellent care to the patients but recently the physician practice network deployed new EMR along with a bunch of online e-prescriptions and lab applications. The hospital system relates to a statewide health information exchange. The new kinds of data support the physicians and administrators in making clinical and financial decisions. BI clinical also leverages technology partnerships to give organizations the

Ratios are highly important profit tools in financial analysis that help financial analysts implement plans that improve profitability, liquidity, financial structure, reordering, leverage, and interest coverage. Although ratios report mostly on past performances, they can be predictive too, and provide lead indications of potential problem areas. Financial ratios are important because they help investors make decisions to buy hold or sell securities.

It is easy to forget that pouring money into a problem will not fix it unless revenue flows continue or are increased and expenses are controlled. Some of the easiest computations can be made with information retrieved from balance sheets and income statements provided by accountants. Ratios such as the current ratio, long-term solvency ratio, contribution ratio, programs and expense ratio, general and management expense ratio, fund-raising and expense ratio, and revenue and expense ratio can provide a picture of where a company stands now compared to where it was in past years and what may need to be done in the future.

Ratio analysis shows the correlation within certain figures of financial statements, like current assets and current liability, and is used for three types of company needs- within, intra- and inter-company. Association can be shown in proportion, rate, or percentage and can evaluate company’s liquidity, profitability, and solvency. Liquidity ratios show company’s ability to pay obligations and fulfill needs for cash; profitability ratios show wellbeing and success for the certain time period; and solvency ratios show company’s endurance over the years.

healthcare organization. We will use business intelligence (BI) system to track and chart the data

This paper examines financial ratio analysis by defining, the three groups of stakeholders that use financial ratios, the five different kinds of ratios used and their applications, the analytical tools used in analysis, and finally financial ratio analysis limitations and benefits.

In this figure, there are two sources of information for business: 1). Information from IW, which has passed through the ETL process before it goes to the end users. 2.) Information from independent data sources, which is processed by different standards. This is counter to the strategic goal of eliminating duplication of analysis, reporting and ad hoc analysis. This environment consumes more time for business users to understand end-user data, and more money for the firm which is wasted on different and possibly conflicting results.

Financial ratios are great indicators to find a firm’s performance and financial situation. Most of the ratios are able to be calculated through the use of financial statements provided by the firm itself. They show the relationship between two or more financial variables that can be used to analyze trends and to compare the firm’s financials with other companies to further come up with market values or discount rates, etc.

I agree that one of the main challenges of implementing BI solutions in the healthcare industry is employing staff that are competent and have skills to deal with BI tools. However, business intelligence is a new concept for most healthcare organizations, thus finding the right resources are definitely going to be a challenge. In addition, Ted Corbett whom has consulting company stated that making sense of stockpile of data and retrieving those would require extensive training and expertise (Briggs, 2013).

The financial management of the healthcare organization needs to handle financial matters carefully in order to perform well. Ratio analysis is a kind of financial statement analysis that is utilized to get a fast indication of an organizations financial performance in most important sectors, for that reason the healthcare organization must utilize ratio analysis to assess its financial position and mere its performance. Health systems routinely compare their financial results to those of a peer group of healthy competitors. Managers of most health organizations strive to achieve the outcome of comparable healthy competitors, it is equally important to examine those unhealthy competitors. By doing this managers can learn from their mistakes and know what to avoid in the future. Mid-level managers should ask themselves questions about the organization they are a part of. Are we as an organization financially on track with similar healthy companies, or are we headed for failure like some insolvent companies? Are certain financial ratios more sensitive and predictive of failure? Ratio analysis is a strategy used to aid in assessing the financial position of an health organization. In healthcare finance, there are a lot of financial ratios which have multiple descriptions. This report focuses on roles and analysis financial ratios in a

The variation in information needs across any healthcare provider organization forces healthcare information technologies (HIT) platforms, systems, processes and procedures to align its design to support the unique information needs of each department and role. The greater this alignment of HIT systems and technologies to specific administrator, doctor, nurse and lab technician roles, the higher the level of overall systems performance and results attained (Agrawal, Grandison, Johnson, Kiernan, 2007). Just as an enterprise has strategic information needs that help to define the future direction of the business, healthcare provider organizations also have a comparable set of strategic information needs. The administrative roles in healthcare providers need to have a consolidated view of the organization from a cost, quality management, service level, patient recovery rate, patient satisfaction and profitability standpoint as well (Middleton, 2005). All of these factors are often gathered together in a dashboard that administrators often rely on to manage the core areas of their healthcare business (Leung, 2012). Administrator's information needs are also longer term in nature and more oriented towards the development of strategic initiatives that will last several years, requiring

The calculation of ratios is the calculation technique for analyzing a company’s financial performance that divides or standardize one accounting measure by another economically relevant measure. Financial ratios can be used as a tool to demonstrate financial statement users for making valid comparisons of firm operating performance, over time for the same firm and between comparable companies. External investors are mostly interested in gaining insights about a firm’s profitability, asset management, liquidity, and solvency.

Firms and Companies include ‘Ratios’ in their external report to which it can be referred as ‘highlights’. Only with the help of ratios the financial statements are meaningful. It is therefore, not surprising that ratio analysis feature are prominently in the literature on financial management. According to Mcleary (1992) ratio means “an expression of a relationship between any two figures or groups of figures in the financial statements of an undertaking”.