Ratios are used for operational activity analysis of an organization
Question # 00507647
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Updated on: 04/03/2017 08:02 AM Due on: 04/03/2017
Ratios are used for operational activity analysis of an organization. Operational analysis activity is control by evaluating input, process, or output variables. According to Longest, Jr and Darr (2014), financial ratio analysis calculates and evaluates various indices that measure HSO/HS risk exposure, activity, and profitability. Read and complete Case Study 5: Financial Ratios. Answer the following question:
What do you conclude when comparing the calculated values for GH with the benchmark values that are supplied by Standard & Poor’s?
- Consider if the hospital is profitable
- What measures should the hospital implement to improve their operational activity?
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Solution: Ratios are used for operational activity analysis of an organization