Cash Flow
This item dropped by nearly half between 2016 and 2017, raising concerns about River’s ability to pay its bills.
Cash and investments (cash reserves)
This ratio shows how much profit River keeps from each dollar of revenue and is higher than the industry median.
Total margin
Selling this type of non‑used asset would give River quick cash and a small bump in ROE.
Vacant land
This major revenue line rose more than 20% from 2015 to 2017, showing strong demand for River’s services.
Net patient service revenue
This group of short‑term obligations nearly doubled in three years, signaling mounting short‑term pressure.
Current liabilities
This liquidity ratio compares a hospital's short-term assets to its short-term obligations and helps analysts judge whether it can meet upcoming bills.
Current ratio
Increasing debt and reducing equity to boost ROE is an example of what kind of move?
Increasing leverage / substituting debt for equity
Despite being the smallest hospital in its area, River ranks highest on this non‑financial performance dimension.
Patient satisfaction / quality
This balance sheet item grew over 30% in one year, showing River is slower at collecting money it’s owed.
Accounts receivable
This ratio compares total debt to total assets and is slightly lower than the industry median.
Debt‑to‑asset ratio
Cutting $0.5M in expenses by improving processes is an example of which management approach?
Lean management / cost reduction
Most of River’s revenue comes from this type of service, even though it has been expanding the opposite setting.
Inpatient services
River funded major equipment purchases mainly using this kind of financing
Long‑term debt
This metric tells us how efficiently River uses its assets to generate revenue.
Asset turnover ratio
Of the three strategies (sell land, add debt, lean management), which one raises ROE with the least financial risk?
Lean management
This group—River’s largest expense—is central to both quality and cost, making retention strategies critical.
Staff / workforce (salaries, wages, benefits)