Swank Medical’s statement of cash flows presents their financial position in many ways. Below you will find the breakdown of a multitude of information that displays the hospital’s financial position, their weaknesses and strengths as well as findings and recommendations for future success.
According to the Du Point analysis as the years have progressed from 2008 through 2012 the hospitals ROE has reduced by nearly half in only four years. At the rate they are going all excess funds will have disbursed in eight more years if something within the operations does not change. Swank hospital could potentially be in the red in as little as 8-10 years if the management doesn’t change business practices.
According to the financial statement analysis ratios presented, Swank medical does not seem to be steady in any respect. In fact the report shows that over the period of four years the return on assets has reduced by almost half as well as the return on equity. Additionally, the cash flow coverage is on an uneven rise and decline but the times they earned interest continue to plummet downward. These are all weaknesses that will harm the hospital’s financial status.
On a positive note Swank has a lessening inventory turnover and an asset turnover that is on the rise most recently. The fixed assets and total asset turnover have been quite minimal. Also strength is the average collection period that was reducing until more recently where it has jumped back up by over 10%.
Although the data from our spreadsheet is from 2012; the most current operating indicator analysis from this data shows marked reductions in profit per inpatient discharge by over $225 and for outpatients $37 per patient over the last four years. Also, there is a positive increase in outpatient revenue percent with a constant incline, even with an average lower daily census and an ever