f you have ever applied for a credit card or a loan, you have had your credit profile reviewed and you had to give information to the lender about your income and expenses. The lender used this information to perform a ratio to determine if you qualified for the loan. Essentially, the lender wants to know if you can afford the loan payments over a long period.
This same principle is applied to business. The financial information can be obtained from a health care organization by reviewing their financial statements. Financial statements can tell a lender if the organization is making enough money (revenue) to afford the debt associated with a loan.
Select 1 of the following financial ratios listed below to use for this discussion:
Use your selected financial ratio and respond to the following in a minimum of 175 words: