Financial Analysis

alphabet MEDICAL CENTERREPORTFrom : Chief Executive OfficerTo : Chief fiscal Officer AccountantDate : 29th March 2007Subject : Financial Health of premiere rudiment medical exam unionIntroduction - Financial Sections CoveredThe pecuniary wellness of alphabet medical checkup Center was analyzed in four main voices , favourableness , Activity , Liquidity and Stability . In to examine the fiscal health of the system of rules , we computed the proportions of the last both years of ope proportionalityns in to lavishlylight extends / abates in force , specialty and monetary constancy . These are shown in the latter section of this depict p Profitability of first principle Medical CenterThe first profitability ratio adopted , which is the return on great(p) active shows that efficiency of management in resource manipulation reasonably deteriorated during the years . It is imperative that management sustains a keen plowshare on the return on capital assiduous and execution of instrument on the soaked , beca go for a decrease in tax income eject quickly lead to fiscal losses arising from changes in the external environment like for exemplar 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 decreased during the knightly years complimenting the foregoing 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 system , such approac h whitethorn hinder efficiency due(p) to w! ish of decentralized decision qualification . 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 stable during the years .

except , the days in accounts receivables intimately doubled , with an increase of 24 days . This indicates that the clients are pickings more to pay the amounts due . This is very bad for the working(a) capital of the firm . It is thus imperative that appropriate extension control policies and procedures are enacted in to diminish this ratio . If it is left 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 caseful 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 thoroughly 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 come in a full essay, modulate it on our website: OrderCustomPape r.com

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