Financial Ratios Analysis and Comparison Paper Essay

Financial Ratios Analysis and Comparison composing - Essay ExampleThe financial symmetrys for Universal Health Services have been calculated for the last ternary years which helps to take care the performance trend of the health compassionate organization. The current ratio and the quick ratio that has been calculated determine the liquidity of Universal Health Services. The return on assets and the return on virtue determine the profitability of the organization. The debt fair-mindedness ratio determines the level of debt incurred by the healthcare group as compared to the equity of the organization. The fixed asset turnover ratio determines the operating performance of the company.The level of liquidity of the group has rock-bottom in a compounded fashion in the last trio years and the level of scrutinize has also increased. The profitability of the healthcare group has increased in a compounded fashion in the last three years. Universal Health Services have been fit to reduce the level of debt as compared to the level of equity (Yahoo finance, 2013). The operating performance of UHS has improved as the fixed assets of the organization have been able to generate more revenues.The financial ratios for Universal Health Services (UHS) have been compared with that of another health care organization namely Health Management Associates (HMA). The relative ratio analysis for the two organizations has been provided for the last three years in order to compare the performance of the organization as compared to the national norms. UHS has maintained a steady level of liquidity over the last three years as compared to MHA. This is evident from the comparative figures of the current ratio. The quick ratio of the two organizations could be compared over the last three years to understand that UHS has been able to manage its enumeration better than MHA. The quick ratio for MHA has declined over the years which mean that the inventory level has risen in the la st three years.The