Eaststoria Nursing Home - Financial Analysis & Management
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Eaststoria Nursing Home - Financial Analysis & Management
Eaststoria Nursing Home - Financial Analysis & Management
Computations & Interpretations
Net Profit or Loss
Net profit or loss is the residual amount after all expenses have been deducted from the total revenues earned by the business.
Eaststoria Nursing Home
Profit & Loss Statement
Total Revenues
$5,000,000
Less: Total Expenses
($4,440,000)
Net Income/Loss
$560,000
The Eaststoria's total net profit is the $560,000 for the financial year passed.
Average Daily Census
Number of Bed in a year
58400
Avg.Occupancy Rate
82%
Total number of inpatients days
47888
Average Daily Census
131.2
The average daily census is the relationship between the no. of day's inpatients and the no. of days in the year. It shows the average inpatients census per day. The Eaststoria's average daily census is 131.2inpatients per day.
Current Ratio
Current Ratio measures the relationship between the organization's short-term assets and non-fixed liabilities.
Current Assets
$250,000
Current Liabilities
$205,000
Current Ratio
1.219512
The Eaststoria's Nursing Home has about 1.22 times of the current assets as relative to its current liabilities.
Net Worth
Net worth is residual of the total economic resources and total obligations of the firm.
Total Assets
$16,000,000
Total Liabilities
$12,000,000
Net Worth
$4,000,000
The Eaststoria's total worth at this specific point in time is $4,000,000.
Resident Days
Resident Days are the number of days a resident resides in the nursing home.
Occupancy Ratio
82%
Resident Days
295.2
The occupancy ratio is multiplied with the total number of days in the year i.e. 360 days and the result is interpreted that the residents reside approximately295 days in the nursing home.
Operating profit
Operating profit is the difference between the operating revenues and the operating profit.
Operating Revenues
$4,450,000
Operating Expenses
$3,100,000
Operating Profit
$1,350,000
The Eaststoria Nursing Home has earned operating profit of amount $1,350,000.
Percent of Net Profit or Loss
The operating profit or loss is divided with the net profit or loss and result is known as the percent of net profit or loss.
Operating Revenues
$4,450,000
Operating Expenses
$3,100,000
Operating Profit
$1,350,000
Percentage of Net Profit
241.071429
The Eaststoria Nursing Home's operating profit is 241.1% of its net profit.
After conducting a financial and nursing home performance ratios, it is much likely to be said that the Eastoria Nursing Home has a favourable financial condition and performance. The nursing home has a net worth of $4 million and had earn about $ 0.56 million as a net profit in the last fiscal year. It has a higher number of assets that its liabilities that tends to reflect that the Eastoria nursing home can meet its obligations easily without any repercussions on its business.
Regulations Affecting Nursing Home Finance
In United States, nursing homes are one of those industries that is being subject highly stringently regulations. The laws and regulations such as Medicaid standards and Federal Medicare along with varying state laws and regulations, nursing homes have to comply with all of these in order to operate legally. Various investigations and studies have been made to investigate, examine or monitor the influences or impact of such regulations on the nursing home operations and their impact on various other dimensions of it such as financing, acquiring allies & associations, etc. The five most relevant examples are briefly defined below:
Quality of care
One of the vastly cited study undertaken ...