2023 Healthcare Finance The Role of Financial Statements 3 pages As a healthcaremanager daily management tasks include financial management | Assignments Online

Healthcare Finance

The Role of Financial Statements – 3 pages 

 

As a healthcaremanager, daily management tasks include financial management. Financialmanagement includes items such as labor cost, equipment cost, and a budget thatcontrols the operations. Proper operations require planning and control. Thebudget is created using the basic financial information and accountingprinciples that an organization uses in its monthly, quarterly, and annualfinancial reports.

After learning thebasics of financial statements, it is very important for a healthcare managerto understand the basic five areas of performance that set the financial planfor the organization. Define and provide an example of what the following mean:

·  Short-term solvency

·  Activity

·  Financial leverage

·  Profitability

·  Value

Define the followingterms, and explain why they are important in a healthcare organization:

·  Current ratio

·  Total asset turnover

·  Debt ratio

·  Profit margins

Include a minimum of 2references.