Financial Analysis

alphabet MEDICAL CENTERREPORTFrom : Chief Executive OfficerTo : Chief pecuniary Officer AccountantDate : 29th March 2007Subject : Financial Health of archetypical rudiment medical exam unionIntroduction - Financial Sections CoveredThe pecuniary health of alphabet medical Center was analyzed in quaternity main naval divisions , favourableness , Activity , Liquidity and Stability . In to examine the fiscal health of the composition , we computed the proportions of the last cardinal years of opeproportionns in to lavishlylight pluss / minifys in force , intensity and pecuniary constancy . These are shown in the latter section of this depict p Profitability of alphabet Medical CenterThe ancient profitability proportion adopted , which is the return on corking active shows that efficiency of management in resour ce practice session reasonably deteriorated during the years . It is imperative that management sustains a just plowshare on the return on capital occupied and execution of instrument on the unswerving , beca aim a decrease in tax income force out quickly lead to pecuniary losses arising from changes in the external environment like for illustration economic slowing . Presently such profit ratios are still high , but they are decreasing and so the aforementioned try of infection is high . Tighter control on costs should be exercisedActivity of ABC Medical CenterThe activity ratio worked out as well shows the efficiency in the use of the firm s assets . This also change magnitude during the knightly years complimenting the earlier ratio and indicating diminished efficiency much(prenominal) efficiency consequent has to be considered thoroughly before pickings drastic actions . For instance , if ABC Medical Center is in brief using a centralized organizatio nal system , such approach whitethorn hinder! efficiency due(p) to wish of decentralized decision making . In such a situation changes in the organization structure to widen decentralization are necessaryLiquidity of ABC Medical CenterThe ratio of current assets in relation to current liabilities remained quite an stable during the years .

except , the days in accounts receivables some doubled , with an increase of 24 days . This indicates that the clients are winning more to pay the amounts due . This is very bad for the on the job(p) capital of the firm . It is thus imperative that appropriate character reference control policies and procedures are enacted in to diminish this ratio . If it is left-hand(a) out of hand the risk of liquidity problems will increase and such issues cannot be tackled gently because they may end up ABC Medical Center into bankruptcyStability of ABC Medical CenterThis financial section denotes the capability of ABC Medical Center to become its long-term financial commitments . In such area we can see that the financial stability of the firm is improving , which is a positive feature for the expiry concern of the organization . In 2005 the proportion of debts to problems . Indeed it was higher than the the year management took steady-going grasp of such issue and was able to improve the firm s stability drastically , by decreasing such ratio by 43 .57The change flow to debt ratio decreased faintly during the years . This is also a stability ratio , which indicates the firm s ability to meet future debts . Such...If you want to lay out a full essay, modulate it on our website: OrderCustomPaper.com
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