Interpreting Financial Results Shyam Sunder Bansal, Riah, Dannielle Dunagan, Michael Moore, William Bice FIN/571 February 29, 2016 Charles Marchand Acadia Healthcare Company, Inc. Acadia Healthcare Company, Inc. (ACHC) is a leading company in the United States of America that deals sets the standard of excellence in the treatment of specialty behavioral health and addition disorders. Acadia Healthcare Company, Inc. operates a network of 585 behavioral healthcare facilities with approximately 17, 100 beds in 39 states (AcadiaHealthcare.com). In the business field, the company must keep track of the financial inflation so as to work on avoiding failures. The company enforces calculating the financial ratios that derived the income statements …show more content…
More liquidity is what manger and shareholders are looking for to determine whether the company has the ability to cover the short-term liabilities. The current ratio value for the year 2013 calculated in comparison to 2012 shows decrease in liabilities. To measure the debt-equity rate of the company, show if a business is using the fitting amount of debt financing (Parrino, Kidwell, Bates, 2012). Greater potential on return and greater bankruptcy risk are shown by higher ratios (Parrino, Kidwell, Bates, 2012). The debt interest rate in 2012 was 15% information revealed the SG&A expenses ratio to income is blank unlike the net year which, is nearly 40% for 2013, long-term debt from the year 2012 to year 2013 has nearly increased by …show more content…
When these two companies’ financial information is viewed in terms of growth percentages we see they become very similar or at least the size difference is no longer that much of a distractor. In fact in some areas the much smaller ACHC demonstrated higher growth. For example in fiscal year ending 31 December 2013 ACHC reported a 40.84% growth in sales. For that same year UHS reported a 4.63% growth in sales so when looking for a company to benchmark ratios are a good way to bring performance into a clearer perspective with sometimes surprising results (Yahoo Finance,