You have been recognized as a financial analysis expert. As such, you have been hired to conduct a review of a for-profit organization’s latest consolidated financial statement and make recommendations to leadership based upon your findings. The business proposal requires the use of 3 scholarly sources to support your work.
Select 1 consolidated financial statement from a for-profit health care organization of your choice.
Choose 2 of the financial ratios listed below and perform a calculation of that ratio using your selected organization’s financial statements. Alternate ratio names are provided in parenthesis.
- Current ratio (liquidity ratio)
- Debt to assets ratio (solvency ratio)
- Free cash flow (solvency ratio)
- Price-earnings ratio (profitability ratio)
- Profit margin ratio (profitability ratio)
- Return on total assets Ratio (profitability ratio)
- Working capital (liquidity ratio)
Include an explanation of what the result of the calculation means about the organization.
Write a 1,050- to a 1,400-word business proposal
Include the following items in your business proposal:
- Background/History of the Organization:
- Describe the health care organization.
- Include the history and purpose, and identify the service or product they offer. (This information is typically found in the annual report.)
- Operational Structure:
- Describe the company’s operational structure (i.e., sole-proprietorship, corporation, partnership, etc.).
- Include a definition of the type of structure and discuss their financial health. (This information is typically found on the SEC website.)
- Financial Analysis and Stability:
- Explain the purpose of financial analysis.
- Identify the steps required in performing a financial analysis.
- Include information about the organization’s assessment of its current financial stability.
- Identify their growth plans or plans to increase future revenue. Include any challenges they have encountered or anticipate.
- Vertical and Horizontal Analysis:
- Compare vertical and horizontal analysis.
- Include the actions the organization should take if the findings show unexpected differences. Provide 1 example.
- Financial Ratios:
- Explain the use of financial ratios.
- Define the 2 financial ratios you selected for this assignment.
- Using the organization’s financial statements, perform a calculation for the 2 ratios.
- Include an explanation of what the result of each calculation means about the organization’s financial status.
- Recommendation For Leadership:
- Recommend 1 financial strategy to leadership. The recommendation must be based on the organization’s financial statements and related to their financial status improvement, liabilities reduction, revenue streams expansion, or future growth.
- Write a conclusion. This closing paragraph is designed to assist the reader in understanding the purpose of the paper.
- Summarize the key points from the supporting paragraphs without introducing any new information.
- Include how this information would be used by health care managers.
Cite 3 scholarly sources to support your assignment.
Format your citations and references according to APA guidelines.