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Running head: USING FINANCIAL RATIOS
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Using Financial Ratios to Assess Organizational Performance
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USING FINANCIAL RATIOS
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An organization's stakeholders need to be aware of the prime financial position of a firm. This
knowledge will come handy when conducting an economic analysis and understanding the
operations of the business. With this, Universal Health services also need to apply new
strategies of analysis based on the financial capability of the organization. Community Health
Systems Inc. is such an organization that specializes with health systems (Burns, 2011). Its
financial analysis will consider the financial ratios with the aim of determining its performance
and efficiency.
Financial ratio to evaluate company
Many tools of analysis may be used to determine the financial status of an organization.
These include the trend analysis, comparative analysis, and the ratio analysis. The ratio analysis
is one of the most sophisticated tools and is quite easy to determine the financial position of a
firm. The ratio analysis explores on the financial statements of the business organization,
including the balance sheet and profit and loss accounts. The profitability ratio examines at
profits realized by the organization. The gross and net profits margin comprise the profitability
ratio. This helps to ascertain the profitability of the ...