Question
Find current and quick ratio. Show work
Find both operating and total margin. Show work.
Find debt ratio, equity ratio, and debt-to-equity ratio. Show work.
alano, Shee MedStar Health, Inc. Consolidated Balance Sheets As of December 31, 2017, June 30, 2017, and December 31, 2016 (Dollars in millions) 2017 2017 2016 Liabilities and net assets Current liabilities: Accounts payable and accrued expenses Accrued salaries, benefits and payroll taxes Amounts due to third-party payors, net Current portion of long-term debt (Note 1) Current portion of self-insurance liabilities Other current liabilities $481.3 343.7 75.9 64.3 96.4 156.0 1,217.6 $456.7 349.0 $476.8 325.4 77.5 80.1 27.5 93.7 157.5 1,164.5 85.5 142.7 1,172.2 Total current liabilities Long-term debt, net of current portion (Note 1) Self-insurance liabilities, net of current portion Pension liabilities Other long-term liabilities, net of current portion 1,637.0 312.9 406.6 263.9 3,776.5 3,838.0 1,646.0 1,215.2 310.6 396.7 258.7 460.2 138.7 3,304.0 Total liabilities Net assets: Unrestricted Unrestricted noncontrolling interest 1,472.8 1,645.2 18.6 1,663.8 148.0 42.4 1,854.2 1,231.0 18.4 1,249.4 133.5 40.4 1,423.3 Total unrestricted net assets 17.7 1,490.5 138.0 41.8 1,670.3 Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets $5,630.7 $5,508.3 $4,727.3 Note I: The current portion of long-term debt includes amounts associated with credit agreements that expire within 12 months from the balance sheet date and principal payments related to outstanding indebtedness due within 12 months of the balance sheet date. In January 2018, the Com reclassified $36. from current to long-term investments 4 million from current to long-term debt at December 31, 2017. A corresponding amount was also reclassified
Explanation / Answer
Current Ratio = current assets / current liabilities = 1617.60/1164.50 = 1.39
Quick ratio = (current assets - inventory - prepaid expense) / current liabilities = (1617.60-67.9-57.2)/1164.50 = 1.28
Operating margin = operating income / net revenues = 26.1/1394.20 = 1.87%
Total margin = net income / net revenues = 80.4/1394.20 = 5.77%
Debt ratio = total liabilities / total assets = 3776.50/5630.70 = 0.67 = 67.07%
Equity ratio =(total assets - Total liabilities) / total assets = (5630.70-3776.50)/5630.70 = 0.33 = 32.93%
Debt - to - equity ratio = total liabilities / (total assets - Total liabilities) = 3776.50/(5630.70-3776.50) = 2.04
