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Du Point Financial Condition Analysis

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Running Head: FINANCIAL CONDITION ANALYSIS 1
Financial Condition Analysis
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FINANCIAL CONDITION ANALYSIS 2
Financial Condition and analysis
It is paramount that DuPoint analysis aid in calculation and assessment of the return on
equity while considering various factors such as leverage, profit margin and financial leverage.
Baldwin analysis
ROE = Total Asset * Profit Margin * Leverage factor
= (Revenues/Total Assets)*(Net income/revenues)*(Total assets/shareholders’ equity)
= (28,613/9,869)*(1,218/28,613)*(9,869/2,118)
= 58 %.
It is important to note that the level of satisfactory of equity holders is determined by the
percentage of ROE. The higher percentage of ROE, the higher the satisfactory level.
Creek park analysis
ROE=3.8% * 2.1*3.2
=25.56%.
Comparative analysis
Assets turnover Margin% Financial Leverage
Creek Park 2.1 3.8% 3.2
Bald win 2.9 4.26% 4.7
Best Bald win Bald win Bald win

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Running Head: FINANCIAL CONDITION ANALYSIS Financial Condition Analysis Name: Institution: Date: 1 FINANCIAL CONDITION ANALYSIS 2 Financial Condition and analysis It is paramount that DuPoint analysis aid in calculation and assessment of the return on equity while considering various factors such as leverage, profit margin and financial leverage. Baldwin analysis ROE = Total Asset * Profit Margin * Leverage factor = (Revenues/Total Assets)*(Net income/revenues)*(Total assets/shareholders’ equity) = (28,613/9,869)*(1,218/28,613)*(9,869/2,118) = 58 %. It is important to note that the level of satisfactory of equity holders is determined by the percentage of ROE. The higher percentage of ROE, the higher the satisfactory level. Creek park analysis ROE=3.8% * 2.1*3.2 =25.56%. Comparative analysis Assets turnover Margin% Financial Leverage Creek Park 2.1 3.8% Bald win 2.9 4.26% Best Bald win Bald win 3.2 4.7 Bald win FINANCIAL CONDITION ANALYSIS Baldwin is the best in terms of industry performance when a comparative analysis is done. However, the revenue of Baldwin decreases significantly. This may have various implications such as decrease in the margin, and the asset turnover. Apparently, Baldwin is undergoing low productivity and efficiency on the asset turnover. The hospital is also incurring high costs and expenses in this scenario (Maher, Ebdon & Bartle, 2020). Steps that Baldwin should take to improve their financial status There are numerous steps that ...
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