Summary of Analysis And Interpretation of Results Discussion

Introduction

This paper will summarize the analysis and interpretation of John Hopkins hospital financial results, specifically the income statement, balance sheet, and expense per encounter. The essay will determine the implications of the analysis and state on where the hospital should implement the pediatric program.

The income statement revealed that the John Hopkins hospital operated at a loss the prior year but improved the following year. The hospital’s total operating revenue increased by 3.7% from $627,842 in the financial year 2017 to $650,937 in the financial year 2018, meaning that the facility’s top management has done favourably in generating more revenue while controlling production costs, expenses, and overhead. The income statement reveals that the facility has high collection period risks, indicating possible problems for the hospital, such as a lack of effective communication with customers concerning their debts and expectations of payment. The balance sheet revealed that the hospital’s current liabilities were greater than current assets, meaning its ability to pay its short-term obligations is at risk. Summary of Analysis And Interpretation of Results Discussion

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The expense per encounter was greater than the revenue per encounter in FY 2017, meaning that the company was operating at a loss. The total operating revenue per encounter is greater than expenses per encounter in FY 2018, meaning that the clinic needs to carefully consider control costs and negotiate higher reimbursement to generate more profits and cover unexpected expenses and costs. The clinic’s operating margin increased from -0.21% in FY 2017 to 0.58% in FY 2018, indicating very low profitability. In addition to negotiating higher disbursement, the clinic can grant fundraising to increase funding and donations (Corporate Finance Institute 2018). The clinic has three days of ability to pay short-term expenses due to its low days cash on hand.

The financial statement analysis reveals that John Hopkins clinic is not doing well financially due to low profitability for the 2017 and 2018 financial years. The low-profit margin indicates that the clinic is not choosing the right price for its services, as indicated by the slightly higher operating revenue per encounter than expenses per encounter. The cash balances reported in the company’s profit and loss account reveal stunted long-term growth, meaning that the clinic has very little amount of cash in the bank to incur debt or meet an expected expense. The profit margin reveals that the clinic is hardly in a good financial position and needs to consider improving the collection rate, negotiating higher reimbursement, controlling costs, and organizing fundraisings to generate more profits and revenue. The clinic is at risk of bankruptcy. Summary of Analysis And Interpretation of Results Discussion

The current organizational data reflects the clinics’ behaviour and reality. The financial analysis reveals poor behaviours and reality regarding the clinics’ operations. The clinic can boost its financial health by embracing work behaviours such as loyalty, diversity, speed of production, and product quality to enhance relationships and efficiency (Penner 2016). Adopting these positive actions and behaviours will create a productive work environment and improve profitability. The assumptions I have made while conducting analysis include fiscal period, economic entity, stable dollar and going concerns, which are all building blocks to effective financial accounting measurement. The assumptions demonstrate operating margin, penetration, and operating revenue per encounter figures, effectively communicating operational maturity and credibility. The implications of the financial analysis reveal that the its good time for the clinic to implement the pediatric program as it is a sustainable investment and will generate profits. Adopting the program will improve the probability of yielding profits and provide a solution to the issue of transfers for acute neurosurgical services for pediatric patients in the region.

Conclusion

This paper has summarized the analysis and interpreted John Hopkins hospital financial results. The financial statement analysis reveals that John Hopkins clinic is not doing well financially due to low profitability for the 2017 and 2018 financial years. The implications of the financial analysis reveal that the its good time for John Hopkins Hospital to implement the pediatric program as it is a sustainable investment and will generate profits. Summary of Analysis And Interpretation of Results Discussion

References

Corporate Finance Institute. (2018, June 13). Analysis of financial statements [Video]. YouTube. https://www.youtube.com/watch?v=O1SFesOJsxE&t=54s

Penner, S. J. (2016). Economics and financial management for nurses and nurse leaders (3rd ed.).             Springer Publishing. Chapter 12, “Assessing Financial Health” (pp. 365–396).

Summary of analysis and interpretation of results

The income statement revealed that the John Hopkins hospital operated at a loss the prior year but improved the following year. The hospital’s total operating revenue increased by 3.7% from $627,842 in the financial year 2017 to $650,937 in the financial year 2018, meaning that the facility’s top management has done favourably in generating more revenue while controlling production costs, expenses, and overhead. The income statement reveals that the facility has high collection period risks, indicating possible problems for the hospital, such as a lack of effective communication with customers concerning their debts and expectations of payment. The balance sheet revealed that the hospital’s current liabilities were greater than current assets, meaning its ability to pay its short-term obligations is at risk. Summary of Analysis And Interpretation of Results Discussion

The expense per encounter was greater than the revenue per encounter in FY 2017, meaning that the company was operating at a loss. The total operating revenue per encounter is greater than expenses per encounter in FY 2018, meaning that the clinic needs to carefully consider control costs and negotiate higher reimbursement to generate more profits and cover unexpected expenses and costs. The clinic’s operating margin increased from -0.21% in FY 2017 to 0.58% in FY 2018, indicating very low profitability. In addition to negotiating higher disbursement, the clinic can grant fundraising to increase funding and donations (Corporate Finance Institute 2018). The clinic has three days of ability to pay short-term expenses due to its low days cash on hand.

The financial statement analysis reveals that John Hopkins clinic is not doing well financially due to low profitability for the 2017 and 2018 financial years. The low-profit margin indicates that the clinic is not choosing the right price for its services, as indicated by the slightly higher operating revenue per encounter than expenses per encounter. The cash balances reported in the company’s profit and loss account reveal stunted long-term growth, meaning that the clinic has very little amount of cash in the bank to incur debt or meet an expected expense. The profit margin reveals that the clinic is hardly in a good financial position and needs to consider improving the collection rate, negotiating higher reimbursement, controlling costs, and organizing fundraisings to generate more profits and revenue. The clinic is at risk of bankruptcy. Summary of Analysis And Interpretation of Results Discussion

The current organizational data reflects the clinics’ behaviour and reality. The financial analysis reveals poor behaviours and reality regarding the clinics’ operations. The clinic can boost its financial health by embracing work behaviours such as loyalty, diversity, speed of production, and product quality to enhance relationships and efficiency (Penner 2016). Adopting these positive actions and behaviours will create a productive work environment and improve profitability. The assumptions I have made while conducting analysis include fiscal period, economic entity, stable dollar and going concerns, which are all building blocks to effective financial accounting measurement. The assumptions demonstrate operating margin, penetration, and operating revenue per encounter figures, effectively communicating operational maturity and credibility. The implications of the financial analysis revealed that the clinic could be a sustainable investment and generate profits and grow with the right management in place. The hospital’s management could use the analysis to adopt strategies that improve the probability of yielding profits and provide a solution to the issue of transfers for acute neurosurgical services for pediatric patients in the region.

Part 2: summary of analyses and interpretation of results

ABC Corporation’s net earnings increased gradually for the three years, with the company reporting net earnings of $2,474, $11,791 and $21,075 for the financial years 2016, 2017 and 2018. The sharp increase means that ABC has favourable stock and shows increasing profitability. ABC’s total assets were valued at $226,376 in 2016, $239,065 in 2017 and $240,252 in 2018, meaning that the company is efficiently utilizing the assets to generate sales and make more profit, hence becoming larger due to increased income earnings. The company’s cash flow statement reveals that ABC’s cash from operations increased from $12,971 in 2016 to $11,791 in 2017 to $37,505 in 2018, while the closing cash balance also increased from $167,971 in 2016 to $183,715 in 2018. The company’s cash flow statement is positive and reveals that ABC is doing well financially and that investors can have more confidence in the future.  Summary of Analysis And Interpretation of Results Discussion

The financial statement analysis reveals ABC is doing well financially as the company reported growing revenue for the three years. ABC’s profit and loss statement recorded a steady increase in revenue for 2016, 2017 and 2018, emphasizing the company’s strong financial outlook. The analysis also points to very little expense increase for the three years, meaning ABC is experiencing a growth spurt, as the expenses are increasing in line with revenue. The cash balances reported in the company’s profit and loss account reveal positive long-term growth, meaning ABC has a healthy amount of cash in the bank to incur debt or meet an expected expense. The profit margin reveals that ABC is in a good financial position and will continue making more sales in the future.

Using the current organizational data can help describe observed organizational actions and behaviours. The organizational data provides insights into the ABC operations, which are critical to improving output quality and the work environment. The financial analysis reveals ABC’s strong financial health, meaning that the company’s top management has embraced behaviours and practices such as loyalty, diversity, speed of production, and product quality to enhance relationships and efficiency. Although the approach to analysis depends on the type of data collected, the current organizational data reflect ABC’s behaviours and reality. The company’s success illustrated in the financial statements is a pointer that ABC has put in place actions and behaviours that create the opportunity for a productive work environment. Summary of Analysis And Interpretation of Results Discussion

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The assumptions I have made while conducting analysis include fiscal period, economic entity, stable dollar and going concerns, which are all building blocks to effective financial accounting measurement. The assumptions demonstrate operating margin, penetration, and revenue per employee figures, effectively communicating operational maturity and credibility. The key assumptions I made in the income statement include revenue, operating expenses and cost of goods sold, while the balance sheet assumptions include the owner’s liability, assets and liabilities. The implications of the company’s financial analysis reveal ABC are a sustainable investment as it has the capacity to generate profits and grow. The company’s positive financial health contributes to its viability and makes it attractive to investors. The company could use the analysis to decide whether to undertake the idea because of the probability of yielding profits and provide a solution to the issue of transfers for acute neurosurgical services for pediatric patients in the region. Summary of Analysis And Interpretation of Results Discussion