St. Michael's Hospital With For-Profit Hospitals Case Analysis

The remainder of this note discusses each of the steps in the process and then provides an exercise on the various financial measures that are useful as part of the analysis. The final section of the note demonstrates the relationship between a firm’s strategy and operating characteristics; and its financial characteristics.

Horizontal refers to the idea of one firm joining with another at the same stage of the same production process. It also allows for greater market share; achieves economies of scale; and an opportunity to enter a different market segment. An example of this would be Ford’s takeover of Volvo - both being car manufacturers.

Horizontal analysis allows side by side comparisons on a year to year basis to determine the performance from one year to the next. The company decides on standards to compare the results of the analysis. Standards are researched by checking competitors, internet research of general industry guidelines or standards created from past experience in the company.

Public not-for-profit hospitals are dependent upon tax-based support for their government sponsors and from patient revenues. Capital budgeting can be financed through government bonds that must be voted upon during elections. Under these circumstances, it is difficult to maintain current equipment and capital

Horizontal analysis is essentially an analysis on the trend of the financials of the company. It shows changes in the amounts of the amounts over a period of time. In the financial statement provided, the horizontal analysis is between years six and seven, and years seven and eight; respectively. When analyzing the income statement provided with the task, several strengths and weaknesses are very apparent. They will be broken down individually and analyzed separately. Horizontal analysis is calculated by using the formula below ("Horizontal Analysis," n.d.)

A horizontal analysis can be defined as “the study of percentage changes in comparative statements” (Charles T. Horngren, 2008, p. 746). It is useful in determining a company’s financial stability. This section will analyze Competition Bikes Incorporated’s (CBI) percentage changes from years 6 to 7 and then 7 to 8. The report will include an analysis of CBI’s comparative income statement and balance sheet.

Next, we studied the financial structures of health care organizations. Specifically, we examined the structure of nonprofit healthcare organizations. I remember spending a good amount of time debating whether or not nonprofits should maintain their tax exempt status. As someone who had spent their entire professional career working for a nonprofit organization, I often viewed myself as the sole champion for these organizations. In sessions and on the discussion boards, I advocated that nonprofit healthcare organizations in most situation function as a safe net of the community and that the level of community benefits these organizations provide do justify the lost revenue for state and federal agencies.

  The money statements is used by both external and internal users including investors, creditors, managers, and executives staff. There are several analysis that are used in many ways of Horizontal Analysis and Vertical Analysis. Horizontal Vertical compares in specific items over number of accounting period that many people uses to balance their information. There are compared in different ways of in Absolute Dollars and by percentage ratios that helps with calculations. Then the Vertical Analysis which compares each separate figure that shows in Financial statements. The explanation of the analysis through income statements and using the balance sheet The analyze information helps many businesses and owners to make good business decisions so understanding the analysis will be great importance to how people compares the analysis.

Horizontal analysis is when an individual looks at the income statement of a company and compares one year to the other to see what kind of percentage it has increased or decreased within the different departments in a company for any given time period. When looking at Competition Bikes (CB) and performing a horizontal analysis, we would take a look at first year 6 and year 7. Between year 6 and 7 there was an increased net sales of 33.3%. This means that from year 6 to year 7 there was a great increase. This means that the customers were happy with the product being sold, and this is a sign of strength within the company. It was a profitable year.

For example, to find out how much the company Operating revenue has increase since 2013 the consultant would have to take the amount of Revenue the company made in 2015 which was $153,324,384 and divide by the amount the company had in 2013 $ 142,931,312. After doing the calculation the consultant would have got a ratio of 104.4% of the increase in 2015 since 2013. After that to find the percent of increase in 2014 which was $153,193,953 then the individual would divide by the base amount from 2013 $146,824,45 and there would have been a 104.3% increase. The consultant should include this ratio in their analyzation because it will show how much the Port makes a year, even though they are under contraction trying to expand their Port. This information would see if the Port is losing business because of the projects that they are doing on their Port or not. Also, while doing the Horizontal analyses the advisor should include the Ratio of increase or decrease in the firm Expenses over the years since the company has to spend money to complete their Projects. To be able to receive this ratio the individual would take the amount of expenses from both 2015 and 2015 and divide the amount spend in in the year 2013 from these numbers to get the ratio of increase. For

Simply put, the horizontal analysis compares specific line items on a financial statement to a base year and computes a percentage change for the year in question. Our horizontal analysis here uses 2013 as the base year and looks at subsequent change relative to that. On the income statement, we should be cheered Amazon’s strong 43.72% growth in net sales between 2013 and 2015, which

Ratio analysis: Perform trend and ratio analysis on current and fixed assets, current and long term liabilities, owner’s equity, sales revenues, EBIT, net income, and earnings per share. Project these trends

Horizontal analysis is also known as trend analysis. It is a financial statement analysis method that demonstrates changes in the amounts of equivalent financial statement items over a period of time. Moreover, it is a useful tool in order to assess the trend situations in an effective and a more comprehensive manner. It involves the statements for two or more periods to evaluate trend situations. This analysis may be conducted for income statement, balance sheet, schedules of current & fixed assets, and statement of retained earnings of an organization (Wainwright, 2012).

Horizontal analysis is the comparison of a company’s historical financial information over a specific period of time. The analysis helps to determine whether an increase or decrease has taken place in particular areas of the financial performance. A horizontal analysis of Wynn’s income statement and balance sheet provides insight into their performance from 2013 and 2014. During this time period, Wynn’s assets increased 8%. Much of this growth was the result of a 37% increase in their investment securities and a 16% increase in their prepaid expenses. However, the firm did experience a 10% decrease in their cash and cash equivalents. The most drastic change occurred in the firm’s stockholder’s equity, which increased nearly 60%. This drastic increase is likely due to the increase in retained earnings over the same period, which increased from $66 million to $164 million. The horizontal analysis of the firm’s consolidated statements of income reveals mostly insubstantial. Wynn

The significance of community hospitals such as Community Hospital in Monmouth County, New Jersey, is greater than one may expect for primary and secondary care services provided to the local communities around the United States. Community Hospital’s mission is to provide exceptional primary care. However, with the declination of profitability in primary care, Community Hospital has had to compete with Shore University Medical Center (SUMC) and University Hospital (UH) for revenue restoration. The decline of Medicare and Medicaid reimbursements and the steady progression toward specialty care vs. primary care require a core alteration to the mission statement to adjust to the changes within the current healthcare system. A newly modified mission and vision statement will prove that Community Hospital has the ability to regain its relevance within the healthcare industry as a leading primary care provider in the community and increase its revenue. The implementation of the new mission and vision for Community Hospital is expected to be upheld without compromising the core values of compassion, advancement, reputation, efficiency, and physician integration. A few proposed strategies to help Community Hospital create a new and improved business model, may seem cumbersome and challenging, however could greatly improve the overall direction of Community Hospital.