Financial Metrics
The metrics to the left and below are used in the following databooks:
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Hospital and Hospital System Performance Dashboard
Hospital and Health System Quarterly and Annual Financial Dashboard
Financial ratio analysis is one critical component of assessing a hospital's financial condition. The following areas are examined in CHIA’s hospital financial reporting:
Capital Reinvestment
Metrics that assess the extent to which an entity has reinvested in capital assets;
Liquidity
Measures the ability to which the entity can meet debts with liquid assets (assets that can be quickly converted to cash while maintaining their value);
Profitability
The extent to which the entity made or lost money in a given period;
Solvency
Measures long-term debt to the overall value of assets;
Average Age of Plant (Capital Reinvestment )
Formula: Less: Accumulated Depreciation / Depreciation and Amortization Expense
The financial age of the fixed assets of the entity. The older the average age, the greater the short-term need for capital resources. Trended over time, measures the reinvestment in plant.