The Bellevue Hospital Center in New York City is a public healthcareorganization that has been associated with the NYC Health +Hospitals. The organization reports its financial highlights andinforms the public by producing financial statements that indicatethe assets, liabilities, revenues, expenses and net positions. Thefinancial condition can be deduced from the margins in the statement.As a public company, the organization is required by the U.S.Securities and Exchange Commission to file Forms 10-Q quarterly,Form10-K annually and Form 8-K if required. In comparison to KochCompany, which is privately owned, there is much difference in themanner in which they report their financial condition. Privatelyowned companies were not obligated to undertake any financialreporting until recently when the Financial Accounting Foundationdecided to form the Private Company Council. They do not file theform 10-Q, unlike the public companies.
By reviewing the Norton Healthcare financial report, and applying thefinancial ratios to the financial analysis, the healthcareorganization can be valued. To effectively undertake the financialanalysis using ratios, the financials should be done in comparison tocompanies whose status is comparable to the organization. On theother hand, tracking the financials over time will produce marginsthat will be indicators of the financial health of the business. Itis essential that the financials be interpreted correctly to valuethe healthcare organization effectively. Financial ratios arecategorized into four sections of the financials that includeperformance, activity, financing and liquidity warnings to evaluatethe efficiency, profitability and financial status of the company(Wahlen, Baginski, & Bradshaw, 2014). The financial statementanalysis illustrates an organization’s overall standing. Theoperating indicator analysis is a method of analyzing financialstatements (Wahlen, Baginski, & Bradshaw, 2014). The ratios areused in comparison to the previous year’s ratios. Such ratios arealways within the expectations and should one vary from that, it willraise a red flag of any potential problems needing the manager’sattention. It helps the healthcare managers when it comes to makingdecisions regarding the financial standing of the organization.
Wahlen, J.,Baginski, S., & Bradshaw, M. (2014). Financial reporting,financial statement
analysis and valuation. Nelson Education.