Financial ratios can be used to examine the financial health of all healthcare companies. Choose a ratio from the lecture or reading that you found very useful. Describe how it is calculated and what it shows. Explain why you can’t use just that one ratio to make a judgment call on the financial condition of a company. Compare your findings to an opposing view of a fellow classmate.
Please make your initial post by midweek, and respond to at least one other student’s post by the end of the week. Please check the Course Calendar for specific due dates.
The ratio I think that would be most useful is revenue, expense, profitability ratios. This ratio has all the components that i think are useful and important because it shows if the company is profitable. Profitability hits more of the necessary topics i think that need to be seen in a business. Using just one ratio will only show you certain amounts, by using two or three different ratios this would give you a wide range of amounts showing you different earnings and assets within the buisness.