Arizona Health Services | Instant Homework Help
You are an administrator at Arizona Health Services (AHS), a large hospital system. You have been asked to assist in evaluating the financial feasibility of purchasing Jiranna Healthcare, a managed care organization in the San Jose area. For this part of the Performance Task, you will conduct a 5-year analysis of Jiranna Healthcares operational and financial data in order to determine whether or not it is an attractive acquisition. Refer to Jiranna Finances for financial statements to analyze. Prepare a 2- to 3-page financial analysis. The focus must be on the content and the depth of your analysis. Unless otherwise indicated, a 5-year trend analysisincluding the most recent year of available datais expected. Complete your analysis as follows: a. Calculate the 5-year net sales, operating expenses, operating income, and net income of Jiranna Healthcare. Once calculations are complete, interpret the resulting data, and explain the significance of the trend results. b. Calculate the 5-year total profit margin, asset turnover, return on assets, and return on net worth. Once calculations are complete, interpret the resulting data, and determine the companys profitability. c. Calculate the 5-year current ratio, days cash on hand, and working capital. Once calculations are complete, interpret the resulting data, and assess the companys liquidity. d. Calculate the 5-year debt ratio and times interest earned ratio. Once calculations are complete, interpret the resulting data, and explain the companys long term solvency. e. Complete a DuPont analysis for each of the five most recent years. Once calculations are complete, interpret the resulting data, and determine the companys individual DuPont characteristics (e.g., total margin, total asset turnover & equity multiplier) and trends across the analysis period. f. Ultimately a decision has to be made. Would you recommend purchasing Jiranna Healthcare? Why?
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