Financial Analysis

The balance sheet shows that most line items have a change that is greater that is 5%. This report will attempt to explain the wild fluctuations in the numbers from one year to the next.

With respect to the current assets, the decline in the cash position can probably be explained by the increase in the inventories and the accounts receivable. They are having problems collecting from their customers, apparently, and this has led to a situation where the receivables turnover has decline substantially. The result is that the asset remains as accounts receivable, instead of having been converted to cash. Patton-Fuller's own business might be in decline as well -- revenues are up but inventories are as well. This might point to poor inventory management, since without a decline in revenues the hospital has allowed its inventories to more than double.

With respect to the long-term assets,...
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