Hca Financial Analysis
Date: February 8, 2013
To: Dr. Harland Hodges
From: Kacie Burton
Subject: Evaluation of HCA’s financials
The following is an analysis of HCA’s financial statements and an explanation of changes in revenue; cost of goods sold to sales; selling, general, and administrative to sales; accounts receivable turnover; inventory turnover; plant property, and equipment; and accounts payable turnover.
Income Statement During the past year, total revenue increased by 5.9%, a near $1.6 billion in additional sales. The cost of goods sold to sales was 17.4%. Selling, general and administrative costs to sales were 45.3%.
|Revenue | | |
| |31-Dec-11 |31-Dec-10 |
| Total Revenue | 29,682,000 | 28,035,000 |
| Sales Growth |5.9% |4.7% |
Revenue
The health care industry is impacted by the overall economy. During economic downturns governmental entities experience budget deficits, resulting in decreased spending for health and human service programs that represent sources of revenue for hospitals. While other hospitals have suffered by the growing number of uninsured patients, The Health Corporation of America has thrived. HCA sales growth increased 5.9% from 2010 to 2011. Revenues consist of net patient services and depend on inpatient occupancy levels, medical services offered to patients, the volume of outpatient procedures, the payment rates for such services, and an allowance for doubtful accounts. The health care industry is rapidly changing due to the Health Reform Act. Healthcare reform is forecasted to increase the number of insured patients and increase industry
To: Dr. Harland Hodges
From: Kacie Burton
Subject: Evaluation of HCA’s financials
The following is an analysis of HCA’s financial statements and an explanation of changes in revenue; cost of goods sold to sales; selling, general, and administrative to sales; accounts receivable turnover; inventory turnover; plant property, and equipment; and accounts payable turnover.
Income Statement During the past year, total revenue increased by 5.9%, a near $1.6 billion in additional sales. The cost of goods sold to sales was 17.4%. Selling, general and administrative costs to sales were 45.3%.
|Revenue | | |
| |31-Dec-11 |31-Dec-10 |
| Total Revenue | 29,682,000 | 28,035,000 |
| Sales Growth |5.9% |4.7% |
Revenue
The health care industry is impacted by the overall economy. During economic downturns governmental entities experience budget deficits, resulting in decreased spending for health and human service programs that represent sources of revenue for hospitals. While other hospitals have suffered by the growing number of uninsured patients, The Health Corporation of America has thrived. HCA sales growth increased 5.9% from 2010 to 2011. Revenues consist of net patient services and depend on inpatient occupancy levels, medical services offered to patients, the volume of outpatient procedures, the payment rates for such services, and an allowance for doubtful accounts. The health care industry is rapidly changing due to the Health Reform Act. Healthcare reform is forecasted to increase the number of insured patients and increase industry