Healthcare Finance | Report

HEALTHCARE FINANCE

Contents
Introduction............................................................................................................... 3
Financial analysis........................................................................................................ 3
Good revenue cycle and accounts management...................................................................6
Creation of an action plan.............................................................................................. 6
Conclusion................................................................................................................ 7
References................................................................................................................ 8

Introduction
The report brings out a discussion on healthcare services company and its financial
performance. For the report, Cardinal health. Inc. is an American healthcare services
organisation, which was founded and established in 1971. Currently, the company deals in
medical and healthcare services with the employee base of 50000 in 2018. Furthermore, the
financial analysis is based on ratio analysis, which is a tool to analyse the business
performance.
Financial analysis
Financial statements are prepared by taking generation information. Financial analysis apply
feasible tools to extract data and rely on specific information. It is important to examine
financial statements by applying ratio analysis. The shareholders are interested to evaluate
financial strengths and weaknesses of organisation, which covers liquidity, efficiency,
solvency, and profitability to examine the company performance (World Health
Organization, 2019).
Profitability ratio-
While analysing the effectiveness of the company with the profitability ratios such as
Operating Profit Margin, Return on Total assets, Gross profit margin, and Return on Equity
are prominent. Profitability ratios define the percentage of profits generated by revenues.
Return on equity shows the percentage of profits generated by employing shareholders’
equity (Du, and Osmonbekov, 2019).
Profitability Ratios 2019 2018
Gross profit margin 5% 5%
Operating Profit Margin 1% 1%
Return on Equity 22% 4%
Return on Total assets 4% 5%