Liquidity sound, operations slipping: that is the verdict of HA520's Unit 3 facility ratio analysis, reached through eight ratios computed for a composite 186-bed hospital. Searches like "ha 520 unit 3 assignment example", "ha520 unit 3 sample" and "ha520 unit 3 example" land here.
What a finished HA520 Unit 3 facility ratio analysis looks like
Ratio blocks fill most of the five pages. Every ratio gets a block of its own: the definition written as a fraction, the statement lines feeding it, both years' results, a bracketed peer median and a short judgment on what the figure means here. Operating margin falls from [6.1] to [1.7] percent against a median of [2.5]. Total margin, lifted by investment income, reads [4.5] percent. Days cash on hand slip from [200.1] to [191.0] even though unrestricted cash grew by [$7.8] million, because daily cash expenses grew faster. Days in accounts receivable rise from [48.8] to [52.5]. The current ratio eases to [1.79]. Debt service coverage drops from [4.39] to [3.46] times, still well clear of a typical covenant floor. Debt to capitalization improves to [34.0] percent, and average age of plant reaches [13.9] years.
How a HA520 Unit 3 example is structured
Ratios are grouped by the question each one answers rather than listed alphabetically: can the hospital earn a margin, can it pay its bills, can it carry its debt, and how old is its plant. A short method note opens the paper and fixes the conventions, since days cash on hand removes depreciation from daily expenses and texts disagree about whether board-designated funds count; the example includes them and says so. Profitability comes first because it drives every other group. Liquidity follows, with the days cash paradox explained in a sentence of its own. Capital structure and debt service come next. Plant age closes the ratio sections and sets up the capital decisions later in the term. A summary table places all eight side by side, with arrows for direction and a mark against each median, and a final paragraph ranks the concerns by urgency.
Four questions, eight ratios
Profitability, liquidity, debt capacity and plant age each assigned the ratios that answer them, so no figure appears without a question standing behind it.
More cash, fewer days
Unrestricted cash up [$7.8] million while days cash on hand fall by nine, explained by daily cash expenses rising from [$0.75] million to [$0.83] million.
Receivables stretching
Days in accounts receivable rising from [48.8] to [52.5], translated into roughly [$3.2] million of cash now sitting in unpaid claims.
Coverage with room to spare
Debt service coverage at [3.46] times and debt to capitalization at [34.0] percent, read as capacity that a continuing operating slide would steadily erode.
An aging plant
Accumulated depreciation divided by annual depreciation gives [13.9] years, a figure that anticipates the equipment and facility requests arriving later in the course.
Where marks go in HA520 Unit 3
Arithmetic without judgment is the classic failure in ratio work, and graders see it constantly: eight correct values, each followed by a sentence restating it in words. Credit goes to a verdict per ratio, tied to the facility and to a benchmark. Missing formulas cost points even when results are right, since nobody can check them. Days cash on hand computed with depreciation left in the denominator understates liquidity, and computing it without saying whether board-designated funds are included makes comparison impossible. One year of ratios cannot show a trend. Benchmarks quoted without a source or a peer group mislead the reader. Papers reporting a healthy total margin without noticing that investment income produced it miss the operating story entirely. The closing ranking carries weight too; a list of eight equal concerns ranks nothing.
Get a HA520 Unit 3 example written to your instructions
Which ratios are required this term, and which facility's numbers feed them? Forward both for Unit 3, with the rubric. The model is computed on those figures, each result judged against a bracketed peer median unless your case names its own benchmark, and delivered within 24-48h. Nothing is charged for a first request.
HA520 Unit 3 questions, answered
Where do peer medians come from?
Rating agencies and hospital finance publications release median ratios for nonprofit hospitals by rating category, and some textbooks reprint them. The example brackets its medians as composite so nobody mistakes them for a current published figure. If your course supplies benchmarks, those go in the bracketed column; if it does not, cite the source and year of whatever medians you use.
Why include board-designated funds in days cash on hand?
Because the board can release them for operations, unlike trustee-held bond funds or donor-restricted gifts, and most rating methods count them for that reason. Some textbooks use cash and short-term investments only. The example states its convention in the method note; what matters is choosing one, saying which, and applying it to both years.
Is there a right number of ratios?
The prompt usually sets it. Where it does not, eight to ten covering profitability, liquidity, capital structure and asset age are enough for a facility of this kind. More ratios rarely improve an analysis and often thin the interpretation. The example stops at eight and spends its words on what each one means for this particular hospital.