FINANCIAL DATA ANALYSIS

Financial Data Analysis



Financial Data Analysis: Patton Fuller Community Hospital

Introduction

Patton-Fuller Community Hospital is a non-for-profit healthcare organization that has provided a broad array of superior quality services and facilities to the city of Kelsey and the surrounding communities since 1975.

Financial Analysis

Following are the financial statements of Patton Fuller Community Hospital, from which we can analyze the financial position over the last two years. There is a two year analysis and comparison on the financial performance of the hospital. The base year is 2008 and it is being compared from 2009.

Patton - Fuller Community Hospital

Statement of Retained Earnings and Stockholders' Equity

For the Year Ending December 31, 2009

2009

2008

Beginning Retained Earnings and Stockholders' Equity

335,035 454,612

Plus: Net Income

( 373)

( 15,846)

Less: Dividends Paid

209,098 103,731

Ending Retained Earnings and Stockholders' Equity

125,564 335,035

From the above statement of retained earnings, we can see that community hospital have shown decrease in retained earnings and shareholder equity by 63%. This is due to decrease in loss of net income as compared to 2008 and therefore increase in dividend paid in 2009. The other financial statements (Balance sheet, income statement and cash flows) are provided in the appendix.

Ratio Analysis

Ratio analysis is an important part of the financial analysis, which is the extension of the preliminary analysis of financial statements. The task of ratio analysis is to provide information about business operations, the functioning of enterprises, and especially its financial condition. This information is used by management in the process of management decision making, as well as the surrounding business: lenders, contractors, investors, auditors, etc.

This analysis is a type of quantitative research and is based on indicators, depicting the relationship set of financial size, important from the viewpoint of their mutual relationships. The choice of indicators of possible calculations based on financial data companies is very wide. Excess rates may, however, embroil the analysis carried out; hence the market economy countries are generally the most effective limited set of indicators that allow characterizing different aspects of the enterprise.

Particulars

2009

2008

Current assets

 

 

 

127,867 130,026

Fixed assets

 

 

 

459,900 418,510

Total assets

 

 

 

587,767

548,536

Average total assets

 

 

587,767

548,536

Cash and cash equivalents

 

2

2

Inventory

 

 

 

32

33

Average inventory

 

 

 

32

33

Current liabilities

 

 

 

23,807 8,380

Total liabilities

 

 

 

462,153 213,450

Total Liabilities & Equity

 

 

 

587,767 548,535

Number of common shares

 

5,000,000

5,000,000

Average number of common shares

5,000,000

5,000,000

Average owners' equity

 

 

587,767

548,535

Market price per share

 

 

0.01

0.01

Cash flow

 

 

 

22,995 41,851

Cash flow per share

 

 

0.00

0.01

Dividends paid

 

 

 

209,098 103,731

 

 

 

 

 

 

Total Revenue

 

 

 

462,982 421,314

Operating expenses 463,293 437,424

Operating income

 

 

 

-311

-16,110

Advertising expense

 

 

 

 

Marketing expense

 

 

 

 

 

Earnings before interest and taxes

132,000

127,000

Interest expense

 

 

 

24,000

24,000

Net income

 

 

 

( 373)

( 15,846)

Ratio analysis is performed on the basis of financial reporting documents of the undertaking, in particular economic size included in the balance sheet and income statement. In calculating the indices is important to consider a significant difference between the balance sheet, which shows the financial condition of the company at the date and profit and loss account, which presents data for the period preceding the reporting date.

In constructing the indicators that make up the volume from both of these documents should be taken into account explicitly the value of ...