1. Why do healthcare leaders need to understand finances and learn to use financial tools?
2. How do operating statements and balance sheets differ? How are they similar?
3. How do ratios offer more information than balance sheet data do?
4. What organizational aspect is demonstrated by liquidity ratios?
5. To which type of healthcare company would the acid test ratio likely be more applicable than the current ratio? Why?
6. Why would an organization have many days cash on hand? How could its strategic plans influence this number?
7. How does inventory reduction affect the cash position of an organization?
8. How does debt benefit an organization? What load of debt is considered too great?
9. How can a public hospital have a low or negative operating margin yet have enough funds to survive and prosper?