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Unformatted text preview: the hospitals financial structure. The long-term debt/equity is coverage that gives the hospital the choice of how much interest they want to pay out. The hospitals cash flow in and out will determine which interest obligations are met and which are not. The total margin is known as a profitability ratio that shows the amount of profit earned from each dollar. The total margin gives information about the hospitals ability to keep their unit prices up, but does not give information on the hospitals ability to generate any kind of economic return. The asset/equity ratio above 1.0 shows that the hospital is actually in debt and that each dollar of the hospitals equity controlled $2.27 of its total assets....
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- Spring '10