The Capstone Consulting Group has been asked to complete an executive summary concerning utilization analysis and issues, a strategic financial assessment, and a market analysis of Webster Hospital that is in southeastern Middleboro.
Utilization Analysis and Issues
Examining current and projected utilization and market penetration can help answer questions concerning the characteristics of patients and the market implications that are associated with these characteristics. Starting with the years of 2014 and 2013, discharges slightly decreased from 5,133 to 5,095 (Seidel and Lewis 2014). Patient days slightly decreased in these two years from 25,002 days in 2013 to 24,655 in 2014(Seidel and Lewis 2014). The number of inpatient surgeries decreased …show more content…
Liquidity is used to describe how easy it is to convert assets to cash. Capital structure can be described as a firm’s debt-to-equity ratio, and it tells how risky a company is. Companies who are associated with greater capital structure pose a bigger risk to investors, but the risk can be the primary source of the company’s growth. Profitability ratios are used to determine the company’s ability to generate profits relative to its expenses. Efficiency is usually known as using the lowest amount of resources to create the greatest amount of production. In this case, to analyze financial efficiency, we will use different ratios for liquidity, capital structure and …show more content…
If any company has a debt-to-equity ratio of over 40% to 50% it should be carefully looked over to ensure there are no major risks in the financial statements (Long Term Debt 2017). Webster Hospital is just above that percentage, so investors may want to look over any financial statements just to ensure there are no major risks. Since their debt to equity ratio is low, it might be safe to say that Webster Hospital may not be taking advantage of their increased profits from their financial
Utilization Analysis and Issues
Examining current and projected utilization and market penetration can help answer questions concerning the characteristics of patients and the market implications that are associated with these characteristics. Starting with the years of 2014 and 2013, discharges slightly decreased from 5,133 to 5,095 (Seidel and Lewis 2014). Patient days slightly decreased in these two years from 25,002 days in 2013 to 24,655 in 2014(Seidel and Lewis 2014). The number of inpatient surgeries decreased …show more content…
Liquidity is used to describe how easy it is to convert assets to cash. Capital structure can be described as a firm’s debt-to-equity ratio, and it tells how risky a company is. Companies who are associated with greater capital structure pose a bigger risk to investors, but the risk can be the primary source of the company’s growth. Profitability ratios are used to determine the company’s ability to generate profits relative to its expenses. Efficiency is usually known as using the lowest amount of resources to create the greatest amount of production. In this case, to analyze financial efficiency, we will use different ratios for liquidity, capital structure and …show more content…
If any company has a debt-to-equity ratio of over 40% to 50% it should be carefully looked over to ensure there are no major risks in the financial statements (Long Term Debt 2017). Webster Hospital is just above that percentage, so investors may want to look over any financial statements just to ensure there are no major risks. Since their debt to equity ratio is low, it might be safe to say that Webster Hospital may not be taking advantage of their increased profits from their financial