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Running head: MEASURES FOR SUCCESS 1Measures for SuccessKelsi DammannAshford UniversityHealth Care FinanceHCA 312Instructor Kevin HayesApril 11, 2016
MEASURES FOR SUCCESS 2For this week’s assignment we were to address liquidity measures and how management works together in an effort to reducing the days in accounts receivable. One thing that is extremely important in everyday businesses is the amount of cash it takes to facilitate daily operations. Liquidityis another important aspect of financial performance, particularly to individuals or companies that provide loans to healthcare organizations. The key question in liquidity is: Does the organization have the money to pay its bills (Smith, 2014)? It’s vital that the financial managers work side by side with other department managers within the organization so that they can quantify the liquidity of the organization. The first measure of liquidity is the current ratio, which measures available funds to pay