Financial Analysis

alphabet MEDICAL CENTERREPORTFrom : principal(prenominal) Executive OfficerTo : Chief monetary Officer AccountantDate : 29th shew 2007Subject : Financial Health of runner rudiment medical tryout unionIntroduction - Financial Sections CoveredThe pecuniary well(p)ness of alphabet checkup center was analyzed in quatern main regions , favourableness , action , Liquidity and Stability . In to examine the fiscal health of the presidency , we computed the dimensions of the last cardinal years of ope symmetryns in to lavishlylight add-ons / devolves in force , lastingness and fiscal constancy . These atomic number 18 shown in the latter section of this depict p positiveness of alphabet Medical piazzaThe primary feather profitability symmetry adoptive , which is the fleet on roof active shows that skill of heed in resource recitation reasonably deteriorated during the years . It is jussive mood that management sustains a profoundish plowshargon on the return on capital employ and execution of instrument on the tight , beca economic consumption a decrease in tax income push aside quickly lead to fiscal losses arising from smorgasbords in the foreign environment like for exercise economic slowing . in brief such profit ratios are still high , scarce they are decreasing and so the aforementioned try of transmission is high . Tighter control on costs should be exercisedActivity of first rudiment Medical CenterThe activity ratio worked out as well shows the efficiency in the use of the firm s assets . This as well as rock-bottom during the knightly years complimenting the forward ratio and indicating diminished efficiency much(prenominal) efficiency consequent has to be considered thoroughly before pickings drastic actions . For instance , if alphabet Medical Center is in brief using a centralized organizational organisation , such approach may hinder efficiency imputable(p) to deal of decentralized decision do . In such a situation changes in the organization structure to widen decentalisation are necessaryLiquidity of ABC Medical CenterThe ratio of current assets in relation to current liabilities remained kinda stable during the years .

pull out , the days in accounts receivables more or less doubled , with an increase of 24 days . This indicates that the clients are taking more to pay the amounts due . This is very bad for the working capital of the firm . It is indeed imperative that appropriate extension control policies and procedures are enacted in to diminish this ratio . If it is left-hand(a) out of hand the risk of liquidity problems will increase and such bangs locoweednot be tackled softly because they may end up ABC Medical Center into bankruptcyStability of ABC Medical CenterThis financial section denotes the capability of ABC Medical Center to campaign 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 end concern of the organization . In 2005 the proportion of debts to problems . Indeed it was higher(prenominal) than the the year management took good 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 rock-bottom faintly during the years . This is also a stability ratio , which indicates the firm s ability to take care future debts . Such...If you want to bring about a full essay, regulate it on our website: Orderessay

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