Financial Analysis: Improving Your Decision Making
To show that my center is competitive and is maximizing its success, I would use the profitability ration because it will show how much my center is making profit in the health industry. This will be enough proof that my center is making attaining the ultimate goal of its operation, which is making profit. I will also show that my center is relying on its own capital. No borrowings (Leger, M. and Dunham, T. n.d.).
Hospital across the United States of America need to work on the cost of healthcare they are providing. It is way too expensive for common Americans to afford.
Hospitals also need to work on the safety of their patient, health givers and the whole hospital at large. This is because some of the hospitals in United States of America are not prepared in case disasters such as fire strike them.
Hospitals also need to ensure that they have all the needed medication in their pharmacies. Some of them lack some medications that are crucial to patients.
In this case study, organizations are using benchmarking to compare themselves with other organizations. This process is more effective when the firms are of the same industry. When they deal in the same products and one firm is firm much head of the other firm. This process can be improved if organization becomes open and candid to their partners. By this, they will be able to show them the real factors that are behind their success (Greenburg, F. 2015).
EBIT is determined by finding the sales of the company. This involves all the money that a company obtains from its operations. It excludes all expenses, taxes and interests.
In this case, the EBIT of the Anywhere Hospital USA are high since its profitability ratio and debt ratios are high (Leger, M. and Dunham, T. n.d.).
Since Anywhere Hospital USA takes care of its employees’ interest, the retirement benefits of the employees are well secured. This is one of the underlying factors that motivate employees to give their best in their workplaces (Greenburg, F. 2015).
Some of the activities I will include in a qualitative analysis include the employees’ satisfaction, customer’s satisfaction etc. My plan would be different in the not-for-profit setting than the for-profit setting. This is because these factors do not directly affect the finances of the company (Freeman, K. 2012).
1. Leger, M. and Dunham, T. n.d. Financial Management for Nurse Managers: Merging the Health with the Dollar.
2. Greenburg, F. (2015). Healthcare Services: Thinking Business. Boston. Print.
3. Freeman, K. (2012). Transforming Nursing Services. Michigan. Print.