Clinic Case Sunnyvale Clinic

Sunnyvale Clinic is well positioned to handle its current debt total debt and to pay the debt as it comes due. Sunnyvale could liquidate its assists at 28% of their book value and still cover its debt. This debt position is supported by the Current Ratio and Days Cash on Hand that both exceed industry benchmarks (Gapenski, L. C., Reiter, K. L., 2016, p 647-648). The use of the clinic’s assets are at benchmarks (Gapenski, L. C., Reiter, K. L., 2016, p 653). The return on each dollar of asset and equity far exceeds the nation benchmarks. Management and staff have done well in managing the Sunnyvale resources. One area of concern is overall debt. The Debt to Capitalization, Times Interest Earned, and Debt Service Coverage are all unfavorable