Organizational Financials

Organizational Financials

Operational and Financial Analysis of the Memorial Hospital

Liquidity Ratios

2007

2008

Current Ratio

1.46

1.31

Quick Ratio

1.35

1.2

Acid Test Ratio

0.39

0.24

Days in A/c rec.

53

55

Avg. Payment Period ratio

89.29

88.79

Cash on Hand (days)

34.76

21.06

The above given chart shows the liquidity ratios of the Memorial Hospital. The current ratio tells us how much the hospital has current assets to cover its current liabilities. The industry benchmark for the current ratio is always 1.00. Whereas, the current ratio for the memorial hospital for the year 2007 was 1.46 and for the year 2008 was 1.31, therefore the hospital's performance from the current ratio's point of view is very stable. The quick ratio of ...