Using Exhibit 12-1 (Eight Basic Ratios Used in Health Care, page 128) define and show your understanding of the following terms:Liquidity Ratios – Current Ratio, Quick Ratio, Days Cash on Hand, and Da

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  1.  Using Exhibit 12-1 (Eight Basic Ratios Used in Health Care, page 128) define and show your understanding of the following terms:
    1. Liquidity Ratios – Current Ratio, Quick Ratio, Days Cash on Hand, and Days Receivables
    2. Solvency Ratios – Debt Service Coverage Ratio and Liabilities to Fund Balance (or Debt to Net Worth)
    3. Profitability Ratios – Operating Margin and Return on Total Assets
  2.  Based on your review of the reading materials (PowerPoint Presentation: Introduction to Health Care Finance and Economics), what is the dilemma faced by health care finance managers in light of the ultimate goals of health care finance? You must use clear examples to show that you understand the question and the answer.
  3.  Using the Finance Indicator Review Sheet determine the financial healthiness of NYU based on the ratios and comparison with nearest competitor (see NYU and its nearest competitor – New York-Presbyterian Hospital/Weill Cornell Medical Center below).

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