Healthcare Financial

4 . Financial health of Hopeful Happy health Cargon Systems Incorpo dimensionnThe financial health of Hopeful Happy health Care Systems incorporation will be examined on quaternity main facets . These encompass fluidness clamsability , management obligation and asset management4 .1 Liquidity Analysis of Hopeful Happy health Care Systems Incorporation A s weak decrease in the current ratio and quick ratio is noted from the liquidity ratios computed above . This implies that the capability of the current assets and most liquid assets to stew the current liabilities of the formation has diminished . much(prenominal) movements in financial ratios indicate a weakening in the financial power of the familiarity . However , it is not up to now at an dread stage since only if an immaterial decrease was noted . It is yet important that management considers such tone meticulously to repress any financial crisesThe liquidity concern is further highlighted by the decrease in the age cash on lot ratio . This ratio indicates the capability of the institution in call of number of days in meeting daily in operation(p) expenditure on the presumption that no cash in hang ups are received during that time frame . The lower the number of days , the much vulnerable is the organization to changes in cash flow stemming from gross sales revenue The ten-day decrease noted in this ratio therefore highlights that Hopeful Happy Health Care Systems Incorporation cash strength is diminishing . The firm is therefore more susceptible to competitive moves and adverse changes in the economic environmentThe only liquidity ratio that remained fairly stable is the debt ratio Such ratio indicates the leverage of the company in terms of what delegate of the company s assets is financed by debts . The higher the debt ratio the greater the leverage and the higher the associated risks Even though this ratio remained static , a high debt ratio exceeding 50 whoremonger be noted .

It is therefore pertinent that a company holds a strong financial position to be able to takings for commitments stemming from long-term debtsOverall a weakening financial position can be noted from the ratios computed above . This is a negative aspect concerning the financial health of the firm4 .2 Profitability of Hopeful Happy Health Care Systems Incorporation On the contrary the profitability of the organization improved drastically during the two-year time frame examined . then the net income increased by 2 ,533 . Such utility provided is not only shown by the horizontal analyses of net income vindicatory conducted above . The return on assets ratio also sheds light on such matter . Indeed the profitability of the company in relation to its drastically from a mere 0 .07 to 1 .80However , the profit margin generated from every 100 of sales remained stable in the two years analyzed . This is adumbrate by the return on sales ratio . and so we can state that the improved profitability noted in the previous paragraph is not the result of increased profit margins stemming from increase in prices . It is mainly arising from better control on operating expenses . This is a very positive feature...If you want to jump a full essay, order it on our website: Ordercustompaper.com

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