Financial Analysis

alphabet MEDICAL CENTERREPORTFrom : Chief Executive OfficerTo : Chief pecuniary Officer AccountantDate : 29th March 2007Subject : Financial Health of outgrowth rudiment medical exam unionIntroduction - Financial Sections CoveredThe pecuniary wellness of alphabet aesculapian Center was analyzed in foursome main sectionalizations , favourableness , Activity , Liquidity and Stability . In to examine the fiscal health of the memorial tablet , we computed the dimensions of the last twain years of ope symmetryns in to lavishlylight adjoins / flows in force , military capability and fiscal constancy . These ar shown in the latter section of this depict p Profitability of rudiment Medical CenterThe uncreated profitability symmetry adopted , which is the return on capital active shows that efficiency of management in resource custom reasonably deteriorated during the years . It is imperative that management sustains a untroubled plowshare on the return on capital industrious and execution of instrument on the tighten , beca expend a decrease in tax income sack up quickly lead to fiscal losses arising from changes in the external environment like for ideal 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 front 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 organizational syst em , such approach whitethorn hinder efficie! ncy due(p) to wish of decentralized decision devising . 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 a stable during the years .

except , the days in accounts receivables virtually doubled , with an increase of 24 days . This indicates that the clients are victorious more to pay the amounts due . This is very bad for the work capital of the firm . It is thus imperative that appropriate creed control policies and procedures are enacted in to dimi nish this ratio . If it is remaining 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 grammatical case 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 wide-cut 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 recover a full essay, modulate it on our website: OrderCustomPaper.com

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