Financial Statement Analysis Coursework Example

Financial Statement Analysis Student’s name: Professor’s name: Course title: Date: UHS’ Financial Statements Analysis Universal Health Services Inc. is one of the biggest and highly respected healthcare management companies around the United States. Founded in 1979, the company has been in operation for over 40 years reflecting a superior track of management (UHS (2015). UHS’ primarily focuses on meeting patients’ healthcare demands across thousands of local communities they call home. The organization works through its facilities including over 240 intense care clinics, ambulatory centers and behavioral health facilities in the United States, the US Virgin Islands, Puerto Rico and the United Kingdom. According to UHS (2015), United Healthcare Service, Inc.'s steady growth trends correspond specifically to their consistent focus on providing the best level of care to their esteemed patients resulting in their high preference profile by physicians who want to make referrals and patients. This paper specifically provides an inner look into the financial image of this renowned company, Universal Health Services Inc. Ratio Analysis As a new chief financial officer of UHS, understanding its financial condition is paramount, especially, when it comes to financial planning and speculation for further investments or redemption of liabilities. To undertake this process, liquidity, profitability, and leverage financial ratios can be useful. The rationale for choosing these is based on the various functions and significance they hold in financial analysis. Liquidity ratios determine how cash relates to other current assets to current liabilities, thus, providing can provide a quick measure of the company’s liquidity (Tracy, 2012). For this task, two liquidity ratio analysis of UHS will be performed. Current Asset ratio, given by Current Assets (C.ACurrent liabilities(C.L) 1,718,3041,100,406=1.562The current ratio of 1.562 is relatively high and...