Liquidity & Debt
River's current ratio in 2017 was 2.67, calculated by dividing current assets by this.
What are current liabilities?
River's licensed bed count remained constant at this number from 2015-2017, even as patient days declined.
What is 210 beds?
In 2017, it took River an average of 93.36 days to collect payment, measured by this ratio.
What is Days in Patient Accounts Receivable (or Collection Period)?
In 2012, the board decided to expand these services to outpatient settings because procedures were moving away from inpatient care.
What are outpatient services?
This ratio, which was 6.01% at the median for similar hospitals, measures how much profit remains after all expenses are paid.
What is Total Margin (or Operating Margin)?
This represents the number of days River could pay its bills; the industry median was 15.99 days.
What is Days Cash on Hand?
Average length of stay (days)
what is patient days ÷ total discharges
These deductions, totaling $10.546 million in 2017, reduce gross patient service revenue to net revenue.
What are contractual allowances (and bad debt/charity care)?
This large for-profit chain recently purchased River's competitor, creating anxiety about market share loss.
What is a for-profit hospital chain?
Between 2015 and 2016, River's net income dropped from $2.629 million to this amount, causing concern among board members.
What is $2.102 million?
River's debt-to-equity ratio of 0.55 in 2017 was healthier than the industry median because it means they have less of this compared to equity.
What is debt (or long-term debt)?
River's occupancy rate in 2017 was 52.23%, calculated by dividing patient days by this number times 365.
What are staffed beds (178)?
River's case mix index of 1.3161 in 2017 suggests their patients require this level of care intensity compared to average.
What is higher (or more complex/more resource-intensive)?
Management plans to create two of these to present five KPIs each—one focused on financial ratios, one on operating indicators.
What are dashboards?
This financial metric, which the board chair specifically requested management improve, measures net income divided by equity.
What is Return on Equity (ROE)?
Current Ratio
Current Assets / Current Liabilities
Debt-to-Asset Ratio
Total Liabilities / Total Assets
Return on Assets (ROA)
Net Income / Average Total Assets
Return on Equity (ROE)
Net Income / Average Net Assets
Last time USC Football won a National Championship
what is 2004
Days cash on Hand
(Cash + Short-term Investments) / (Total Operating Expenses / 365)
Debt-to-equity
Total Liabilities / Total Net Assets
Average Total Assets
(Beginning Total Assets + Ending Total Assets) / 2
Days in A/R
Average Accounts Receivable / (Net Patient Revenue / 365)
Who is Verna B. Dauterive?
Educator and principal in the Los Angeles Unified School District, one of the first four Black teachers in the district in 1943.