Robertwood Johnson University Hospital: Financial Analysis

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A Financial analysis determines how well an organization is performing financially and whether improvement is needed by reviewing the organization’s financial statements and calculating ratios. I have reviewed Robertwood Johnson University Hospital’s, Saint Peter’s Healthcare System’s (Saint Peter’s University Hospital), Catholic Health East’s (Saint Michael’s Medical Center) financial statements and determined the following calculated ratios. The current ratio using the balance sheet will determine whether Robertwood Johnson University Hospital’s, Saint Peter’s Healthcare Systems, (Saint Peter’s University Hospital), Catholic Health East’s (Saint Michael’s Medical Center) short-term assets can pay off its …show more content…

Whereas, the lower the percentage, there is less money owed and/or borrowed, and its equity position is stronger (Investopedia, 2010).

Formula:

Total Liabilities
Debit ratio = --------------------- Total Asset

Robertwood Johnson University Hospital

Year 2014 746,850 ----------------- = 0.45 Debit Ratio 1,669,675

(Robert Wood Johnson University Hospital (December 31, 2013) (Robert Wood Johnson University Hospital (December 31, 2014)

Saint Peter’s Healthcare System (Saint Peter’s University Hospital)

Year 2014 382,505 ----------------- = 0.88 Debit Ratio 432,913

(Saint Peter’s Healthcare System, Inc. (December 31, 2012) (Saint Peter’s Healthcare System, Inc. (December 31, …show more content…

Formula:

Operating Cash Flow
Operating Cash Flow Ratio = ----------------------------- Operating

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