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DRAFTHCA270 - F inancial Presentation Ratio analysis from...

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Financial Presentation Ratio analysis from the 2005 and 2006 financial statements : Current Ratio- 2006 – 1.81 2005 – 2.16 Translation – Arcadia come to be less capable to cover their existing obligations out of their present assets; the change shows lower liquidly, plus could distress the extension of credit commencing prospect lenders. Ratio analysis from the 2005 and 2006 financial statements : Inventory turnover – 2005- .61 2006- .74 Translation: Arcadia could move the inventory quicker in 2006, thus shows improved sale or resource use. Nonetheless, Hospitals are huge determined companies, so the majority of “Net Patient Revenues” come from reduced than sold inventory. Ratio analysis from the 2005 and 2006 financial statements : Total asset – 2005 - .72
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2006 - .74 Translation- This is handy for comparing company ratios. The turnover was 1.01 this indicates Arcadia management is unproductive or further capital intensive from the rivals. A comparison of the 2005 and 2006 ratios : Within 2005 and 2006 Arcadia’s liquidity declined, shown by the descent in current ratio.
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