Ratios Hca270

A leverage proportionality is any proportion employ to calculate the financial leverage of a company to fix an idea of the companies methods of financing or magnate to measure its ability to meet financial obligations. A groovy structure ratio shows the percentage of capital at work in a business. Current ratio = short limit assets/short landmark liabilities 6,900/3,200 = 2.15625 The current ratio shows that Arcadia is in a good persuasion to meet its short term liabilities. Compargon to 1999 median they are in a better position than that medium out company. This is a leverage ratio. It shows capital structure. Asset/Equity= 17,900/7,900 = 2.265823 The asset/ righteousness ratio indicates a companys leverage. It is the amount of debt used to pay the firm. This is a leverage ratio and is a poor ratio to use since it depends highly on the industry of operation, size, economic conditions and more other factors. Long-term debt/ equity = 6,800/7,900 =.860769 = 86.0769% This means that about 86% of the companys equity that is indebted or leveraged. Compared to the 1999 average they are highly leveraged. Arcadia is taking more risk than the average acute care hospital. This is a leverage ratio and shows capital structure.

Total Margin = (Revenue Cost of goods sold)/ Revenue (568-536)/568 = .056338 = 5.6338% This ratio shows that for all(prenominal) dollar that Arcadia generates in revenue 5.6338 cents are retained as gross profits. Compared to the 1999 median Arcadia earns around 1.7 cents more than the average imitate for every dollar of revenue. This is a profitability ratio and is a good measure for the companys earnings potential. inference: Arcadia can easily pay off its short term debt with its short term assets on hand. They have over geminate the amount of assets compared to equity. They have a large amount of long-run debt when compared to equity. This shows that the company is leverage and is taking risk to increase profits. As for the... If you want to get a full essay, order it on our website: Orderessay

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