You have been recognized as a financial analysis expert. As

 

You have been recognized as a financial analysis expert. As such, you have been hired to conduct a review of a for-profit organization’s latest consolidated financial statement and make recommendations to leadership based upon your findings. The business proposal requires the use of 3 scholarly sources to support your work.

Select 1 consolidated financial statement from a for-profit health care organization of your choice.

Assignment Directions:

Choose 2 of the financial ratios listed below and perform a calculation of that ratio using your selected organization’s financial statements. Alternate ratio names are provided in parenthesis.

  • Current ratio (liquidity ratio)
  •  Debt to assets ratio (solvency ratio)
  • Free cash flow (solvency ratio)
  • Price-earnings ratio (profitability ratio)
  • Profit margin ratio (profitability ratio)
  •  Return on total assets Ratio (profitability ratio)
  • Working capital (liquidity ratio)

Include an explanation of what the result of the calculation means about the organization.

Write a 1,050- to a 1,400-word business proposal 

Include the following items in your business proposal:

  • Background/History of the Organization: 
  • Describe the health care organization.
  • Include the history and purpose, and identify the service or product they offer. (This information is typically found in the annual report.)
  • Operational Structure: 
  • Describe the company’s operational structure (i.e., sole-proprietorship, corporation, partnership, etc.). 
  • Include a definition of the type of structure and discuss their financial health. (This information is typically found on the SEC website.)
  • Financial Analysis and Stability:  
  • Explain the purpose of financial analysis.
  • Identify the steps required in performing a financial analysis.
  • Include information about the organization’s assessment of its current financial stability.
  • Identify their growth plans or plans to increase future revenue. Include any challenges they have encountered or anticipate.
  • Vertical and Horizontal Analysis:
  • Compare vertical and horizontal analysis.
  • Include the actions the organization should take if the findings show unexpected differences. Provide 1 example.
  • Financial Ratios: 
  • Explain the use of financial ratios.
  • Define the 2 financial ratios you selected for this assignment.
  • Using the organization’s financial statements, perform a calculation for the 2 ratios.
  • Include an explanation of what the result of each calculation means about the organization’s financial status.
  • Recommendation For Leadership: 
  • Recommend 1 financial strategy to leadership. The recommendation must be based on the organization’s financial statements and related to their financial status improvement, liabilities reduction, revenue streams expansion, or future growth.
  • Conclusion:
  • Write a conclusion. This closing paragraph is designed to assist the reader in understanding the purpose of the paper.
  • Summarize the key points from the supporting paragraphs without introducing any new information.
  • Include how this information would be used by health care managers.

Cite 3 scholarly sources to support your assignment.

Format your citations and references according to APA guidelines.