Ration Analysis in Decision Making Assignment Example | Topics and Well Written Essays - 1000 words

Ration Analysis in Decision Making - Assignment Example The healthcare company that is going to be evaluated in this report is Cameron Memorial Community Hospital. The financial statements of Cameron Memorial Community Hospital are illustrated in Appendix A and B. The tool that is going to be used to analyze the financial statements of the company is ratio analysis. The Cameron Memorial Hospital was founded in 1926 by Don F. Cameron. The hospital is a 25 bed Critical Access Community Hospital. â€Å"CMCH is a comprehensive healthcare system that services the Tri-State Area of Northeast Indiana, South Central Michigan and Northwest Ohio† (Cameronmch). Some of the services offered at Cameron Memorial Community Hospital include radiology, sleep center, surgical services, occupational health, and hospice care. There are over 100 doctors working at Cameron Memorial Community Hospital. In order to comply with its civic duties and social responsibility the hospital created the Cameron Hospital Foundation. The 2010 fiscal year of Cameron M emorial Community Hospital started September 30, 2009 and ended September 30, 2010. In 2010 Cameron Memorial Community Hospital generated total revenues of $41.94 million (In). The company’s revenues increase by 4.98% in comparison with fiscal year 2009. The total expenses of the hospital in 2010 were $41.10 million. The net margin of the company in 2010 was 4.51%. The net margin is an absolute measure of profitability. It is calculated by dividing net income by total revenues. In order to determine whether the net margin of Cameron Memorial Community Hospital is good or not we must compare it to the industry standard. A good database that has information regarding the industry standards across different industries is the Dun & Bradstreet database. The health care industry net margin industry standard is 4.2% (Dun & Bradstreet). The net margin of Cameron Memorial Community Hospital was above the industry standard by 0.31%. The table below illustrated a ratio analysis of Camer on Memorial Community Hospital in 2010. Cameron Memorial Community Hospital 2010 Net Margin 4.52% Return on Equity 7.30% Return on Assets 4.12% Debt Ratio 2.29 Current Ratio 1.97 Working Capital $4380419 Debt to 'Equity 0.77 The return on equity of Cameron Memorial Community Hospital in 2010 was 7.30%. The return on equity metric measures how effective a company was at generating profits from its total equity. The formula to calculate return on equity is dividing net income by total equity. The industry standard return on equity is 9.2% (Dun & Bradstreet). The return on equity of Cameron Memorial Community Hospital in 2010 was 1.90% below the industry standard. The return on assets of the company in 2010 was 4.12%. The return on assets metric can be calculated by dividing net income by total assets. The industry standard return on assets is 4.30% (Dun & Bradstreet). The return on assets ratio measures how effective a company was at generating profits from its total assets. The retur n on assets of Cameron Memorial Community Hospital was 0.18% below the industry standard. The debt ratio measures a company’s ability to pay off its long term debt. The debt ratio is calculated dividing total assets by total liabilities. The debt ratio of Cameron Memorial Community Hospital in 2010 was 2.29. The general rule for a debt ratio is that a debt

Wrist watches Industry Assignment Example | Topics and Well Written Essays - 2500 words

Wrist watches Industry - Assignment Example Nevertheless, the English and Swiss watchmaker's dominance in the wristwatch industry would have been subjected to various threats due to innovations occurring from the rest of the world. For example, the Swiss watchmakers were repeatedly unable to react properly to these emerging innovations in the technological aspects of wrist watch design. The industry serves as a proof that many watch-making companies across the world would often do the same mistake repeatedly. These companies often were unable to detect the trends and cycles of the changes in watch-making technology in order to get prepared for it. The great examples of these technological changes were the 'Quartz technology' and the 'following shift of emphasis to fashion has had dramatic impacts on the watch industry' (HEGARTY and CORNER, 1996). Japanese watch-making companies were able to grasp the opportunity that the Quartz technology has to offer which made them more dominant than Swiss companies. However, the later emphasis on design and fashion on wristwatches brought back the glory and dominance back to Swiss watch-making companies. The development of Quartz technology made Japanese companies dominant for a while. Japanese companies were so overwhelmed by their successes that they were unable to detect the upcoming trend in wristwatch industry, which is emphasis on fashion and style. These new trend was dominated by the Swiss companies for the next 10 years (HEGARTY and CORNER, 1996)Wristwatch companies, both Swiss and Japanese alike, were unable to respond well to the threats that were coming their way when they were in their dominant position which unable them to understand future needs and preferences of wristwatch buyers. 'The Swiss and English did not recognise the threat that machined watches with interchangeab le parts were to them and they lost large market share in the Nineteenth century. It took almost half of a century for Swiss companies to recover market share up to and during WWII' (HEGARTY and CORNER, 1996). However, Swiss companies' efforts to take back the watch industry proved to be successful at the turn of the 20th century. The introduction of the Dingley Tariff Law enabled companies such as Bulova, Benrus, Gruen, and Longines-Wittnauer to 'assemble watches in the U.S. with Swiss movements'. The Swiss developed more accurate techniques and founded their factories on the knowledge acquired by Mr. 'Favre-Perret's visit to the U.S'. It was the Swiss companies' focused on advancement in mechanical parts and development of 'complications such as calendars, chronographs (stop watches), and self-winding models' that helped them sustained their dominance. On the other hand, Rolex, with the development 'first water resistant watch in the 1920s and the first automatic winder in 1931' contributed to Swiss dominance. Moreover, Swiss watchmakers made smaller wristwatches with more accuracy and reliability. As a result, 80% of worldwide wristwatch market was won back by two Swiss companies by th e conclusion of the Second World War. Even though 'Allied factories' re-focused to wristwatch production after the second world war, Swiss watchmake