Calculate the financial ratios for Dr. Smith and Brown’s physician practice to analyze the financial viability of the organization.
Identify the type of ratio for each of the following:
Current ratio
Quick ratio
Debt Service Coverage ratio (DSCR)
Operating Margin
Return on Total Assets (ROTA)
Part 2: Type of Ratios
Define the type of ratios used in determining the financial viability of an organization.
Liquidity
Solvency
Profitability
Part 3: Operating Ratios
Define the financial ratios utilized to determine the financial status of Dr. Smith and Brown’s physician practice.
Compare the results in Part 1 with the median to determine the value associated with the financial ratio.
Analyze the results calculated in Part 1 and explain what the calculated result tells you about the financial health of Dr. Smith and Dr. Brown’s physician practice
Calculate each of the operational ratios for Dr. Smith and Dr. Brown’s physician practice.
Define the time value of money.
Provide a real-world example for the time value of money.
Explain why time is an important factor when considering a capital expenditure.
Explain your rationale on whether you would recommend the purchase of the capital expenditures identified.
Include any positive or negative aspects of regulatory or government mandates that were considered in making the decision to purchase the capital expenditures.
