51instructions Using The Income Statement And Balance Sheet Below C ✓ Solved

5.1 Instructions: Using the Income Statement and Balance Sheet below, calculate each of the ratios below in the yellow cell. Use formulas to show your work. For each ratio, provide a brief ratio analysis, trend analysis and comparative analysis. Ratio Analysis: Briefly explain what the ratio means Trend Analysis Compare 2019 results with 2018 and explain if the ratios improved or declined and briefly why this could have occurred Comparative Analysis Compare HPMC 2019 with industry averages and explain how HPMC did compared to other comparable hospitals. INCOME STATEMENT - HIGH PLAINS MEDICAL CENTER RATIOS 2019 HPMC 2019 HPMC 2018 Industry Averages Patient service revenue 9,305 PROFITABILITY Less: Provision for bad debts 9,655 Total Margin 4.9% 4.4% Net patient service revenue 9,650 Premium revenue 7,250 Other revenue 3,214 Total operating revenue 0,114 Operating Margin 3.0% 1.6% Nursing services ,620 Dietary services 8,373 General services 29,907 ROA (return on assets) 4.8% 3.7% Administrative services 23,674 Employee health and welfare 13,375 Malpractice insurance 1,792 Depreciation 10,433 ROE (return on equity) 6.4% 8.3% Interest expense 3,344 Total expenses 6,516 Operating income