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Financial Ratios List - Excel

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					                                  Selected Financial Ratios

1   Liquidity Ratios

    The purpose of liquidity ratios is to measure the facility’s ability to pay its bills.

      1a   Current Ratio:
           The Current Ratio is used to measure a facility’s ability to meet its current
           liabilities out of current assets. Note : Current assets that are pledged to
           secure long-term liabilities should not be used when calculating Current
           Ratio. It is the ratio of current assets divided by current liabilities. Detail
           can be located on the facility's Balance Sheet. The Department recognizes
           it may be difficult for facilities which are hospital based to obtain this
           information specific to the nursing home. Therefore, for the nursing
           homes which are hospital based, please provide the information for this
           ratio for your entire operation.
            Current Assets        =       Current Ratio
           Current Liabilities

           A current ratio of 1.5 to 2.0 is usually viewed as appropriate.

      1b   Age of Plant Ratio:

           The Age of Plant ratio measures facility’s performance of keeping a
           modern, up-to-date facility and equipment. It is the accumulated
           depreciation for property, plant and equipment divided by current year
           depreciation. Detail can be located on facility's Balance Sheet and the
           Statement of Operations. The Department recognizes it may be difficult
           for the facilities which are hospital based to obtain this information
           specific to the nursing home. For the nursing homes that are hospital
           based please use the excel worksheet found on the tab labeled STEP
           DOWN. (Instructions for use of the Stepdown are on the Instructions

           Accumulated Depreciation - PPE        =    Age of Plant
           Depreciation

           A lower number is desirable.
       1c   Days in Resident Accounts Receivable:

            The Days in Resident Accounts Receivable computes the average
            collection time of resident receivables. It is the net receivables divided by
            the average daily net resident service revenue. Net Resident Accounts
            Receivable is Accounts Receivable less allowance for Doubtful Accounts.
             Detail can be located on facility's Balance Sheet. Net Resident Service
            Revenue includes all Room and Ancillary Revenue less Contractual
            Adjustments. Detail can be located on facility's Statement of Operations.

            Net Resident Accounts Receivable =          Days in Accounts Receivable
            Net Resident Service Revenue / 365

            A higher number indicates that the facility is not doing a good job in
            converting accounts receivable into cash on a timely basis.

2)   Leverage Ratios

     Leverage ratios measure the facility’s ability to meet its long term obligations.

      2a) Debt Service Coverage Ratio:

            The Debt Service Coverage Ratio measures the total debt service
            (principal and interest) coverage from cash flow. It is the sum of net
            revenue (expenses) + depreciation + interest expense divided by the sum
            of the principal payments + interest. Detail can be located on the facility's
            Statement of Operations for net revenue, depreciation and interest
            expense; principal payments can be located on the Balance Sheet with the
            amount of payments being the difference between beginning and ending
            balances. The Department recognizes it may be difficult for the facilities
            which are hospital based to obtain this information specific to the nursing
            home. For the nursing homes that are hospital based please use the excel
            worksheet found on the tab labeled STEP DOWN. (Instructions for use
            of the Stepdown are on the Instructions tab of the excel worksheet.)

            Net Revenue (Expense) + Depreciation + Interest = Debt Service Coverage Ratio
            Principal Payments + Interest

            Typically, a ratio in excess of 2.0 is expected for good credit rating.
3   Efficiency Ratios

    Efficiency ratios compute the effectiveness of the facility to produce a profit.

      3a   Return on Total Assets:

           The Return on Total Assets measures the profits generated by the total
           assets of the facility. The return on assets indicates the productive
           utilization of business resources. It is Net Revenue (Expense) divided by
           total assets. Detail can be located on the facility's Statement of Operations
           and Balance Sheet. The Department recognizes it may be difficult for
           facilities which are hospital based to obtain this information specific to the
           nursing home. Therefore, for the nursing homes which are hospital based,
           please provide the information for this ratio for your entire operation.

           Net Revenue (Expense)       =    Return on Total Assets
           Total Assets

           This is a summary indicator of profitability. Also, Net Equity can be
           substituted for Total Assets to measure profitability on equity.

     3b    Operating Margin Ratio

           The Operating Margin Ratio measures the portion of operating revenue
           retained as income from operations. It is Net Revenue (Expense) divided
           by Total Operating Revenue. Net Revenue excludes investment income
           and other non-operating activities and includes Contractual Adjustments.
           The details can be located on the facility’s Statement of Operations.

           Net Revenue (Expense)        =    Operating Margin Ratio
           Total Operating Revenue

           This is a summary indicator of profitability of the operations of the facility.
                               Financial Ratio's Worksheet

     Center

Fiscal Year End

Selected Financial Ratios


Liquidity Ratios

Current Ratio:
(Current Assets / Current Liabilities)                                  a / b

                     a         Current Assets
                     b         Current Liablilites



Age of Plant Ratio:
(Accumulated Depreciation-PPE / Depreciation)                           a / b

                     a   Accumulated Depreciation
                              Land Impr, Building, Fixed Equip $                 -
                              Equipment, Furniture & Vehicles $                  -
                                                               $                 -
                     b   Depreciation
                              Land Impr, Building, Fixed Equip $                 -
                              Equipment, Furniture & Vehicles $                  -
                                                               $                 -



Days in Resident Accounts Receivable:
(Net Resident A/R / (Net Resident Service Revenue / 365))           c / ( f / 365 )

                         Nursing Facility Accounts Receivable
                     a         Accounts Receivable
                     b         Less: Allowance Accounts                               (show as negative number)
                     c         Net Accounts Receivable          $                -

                         Nursing Facility Revenue
                     d         Gross Resident Revenue
                     e         Less: Contractual Adjustments                          (show as negative number)
                     f         Net Revenue                      $                -
     Center

Fiscal Year End

Leverage Ratios

Debt Service Coverage Ratio:
(Net Operating Income (Loss) + Depreciation + Interest        (e+f+g) / h
Expense / (Principal Payments + Interest))

                        Nursing Facility
                    a         Gross Resident Revenue          $           -
                    b         Less: Contractual Adjustments   $           -
                    c         Net Revenue                     $           -

                    d        Operating Expense
                    e        Net Operating Income (Loss)      $           -

                    f        Depreciation Expense             $           -
                    g        Interest Expense

                    h   Payments
                            Principal
                            Interest                          $           -
                                                              $           -



Efficiency Ratios

Return on Total Assets:
(Net Operating Income(Loss) / Total Assets)                       a / b

                    a        Net Operating Income (Loss)      $           -
                    b        Total Assets



Operating Margin Ratio:
(Net Operating Income (Loss) / Total Operating Revenue)           a / b

                    a        Net Operating Income (Loss)      $           -
                    b        Net Resident Revenue             $           -
                                                                                                                                                               c24cd4e3-c52b-446a-ac70-126ad693453a.xls


Medicare Cost Report Information
                                           0
       WORKSHEET B
       January 0, 1900
       Capital Cost - Movable Eq.
       ---------------------------------------                          A              B             C              D                 E                F              G                   H                I               J                 K               L               M                                                                        N
                                                    DIRECT         Cap. Cost      Cap. Cost      Employee        Adm &            Maint &           Op of           Laundry             House           Dietary         Cafeteria         Maint of       Nursing         Central                                                                     CRNA
                   DEPARTMENT                        COST           Building      Mov. Equip.     Benefits        Gen'l           Repairs           Plant                              keeping                                           Personnel        Adm            Servcies                                                                                     TOTAL
          ---------------------------------------    --------        --------       --------       --------       --------         --------         --------         --------           --------        ---------        ---------        ---------      ---------        ---------                                                                   --------         --------
    3     Capital Cost - Building                                             0
    4     Capital Cost - Movable Eq.                          0               0             0
    5     Empl Ben & Human Res                                                0             0              0
    6     Adm & Gen'l                                                         0             0              0                 0
    7     Maintenance & Repairs                                               0             0              0                 0                0
    8     Oper of Plant                                                       0             0              0                 0                0                0
    9     Laundry                                                             0             0              0                 0                0                0                0
   10     Housekeeping                                                        0             0              0                 0                0                0                0                  0
   11     Dietary                                                             0             0              0                 0                0                0                0                  0                0
   12     Cafeteria                                                           0             0              0                 0                0                0                0                  0                0                0
   13     Maintenance of Personnel                                            0             0              0                 0                0                0                0                  0                0                0             0
   14     Nursing Adm                                                         0             0              0                 0                0                0                0                  0                0                0             0                 0
   15     Central Services and Supply                                         0             0              0                 0                0                0                0                  0                0                0             0                 0             0
   16     Pharmacy                                                            0             0              0                 0                0                0                0                  0                0                0             0                 0             0              0
   17     Medical Records                                                     0             0              0                 0                0                0                0                  0                0                0             0                 0             0              0              0
   18     Social Services                                                     0             0              0                 0                0                0                0                  0                0                0             0                 0             0              0              0              0
   19     Other (specify)                                                     0             0              0                 0                0                0                0                  0                0                0             0                 0             0              0              0              0              0
   20     Nonphysician Anest                                                  0             0              0                 0                0                0                0                  0                0                0             0                 0             0              0              0              0              0                 0
          Hospital                                                            0             0              0                 0                0                0                0                  0                0                0             0                 0             0              0              0              0              0                 0                0
   34     Skilled Nursing Facility                                            0             0              0                 0                0                0                0                  0                0                0             0                 0             0              0              0              0              0                 0                0
   36     Other Long Term Care                                                0             0              0                 0                0                0                0                  0                0                0             0                 0             0              0              0              0              0                 0                0
          Ancillary Service Costs                                             0             0              0                 0                0                0                0                  0                0                0             0                 0             0              0              0              0              0                 0                0
          Outpatient Service Costs                                            0             0              0                 0                0                0                0                  0                0                0             0                 0             0              0              0              0              0                 0                0
          Special Purpose Costs                                               0             0              0                 0                0                0                0                  0                0                0             0                 0             0              0              0              0              0                 0                0
          Special Purpose Costs                                               0             0              0                 0                0                0                0                  0                0                0             0                 0             0              0              0              0              0                 0                0
          Nonreimbursable Costs                                               0             0              0                 0                0                0                0                  0                0                0             0                 0             0              0              0              0              0                 0                0
                                                      --------       --------       --------       --------       --------         --------         --------         --------           --------         --------         --------         --------       --------         --------       --------       --------       --------       --------       --------         --------
          TOTAL                                                0              0              0              0              0                0                0                0                  0                0                0                0              0                0              0              0              0              0              0                0
                                                    ========       ========       ========       ========       ========         ========         ========         ========           ========         ========         ========         ========       ========         ========       ========       ========       ========       ========       ========         ========




                                                                                                                                                                                    STEPDOWN
                 Instructions for Step Down Worksheet

         PLEASE NOTE: THE COST REPORT PREPARER MAY NEED TO PROVIDE THESE AMOUNTS .

         Capital Asset Information

           (1)   Record depreciation reported on W/S A, lines 3 and 4, of the Medicare cost report. List the amounts in the appropriate lines on the spreadsheet.

           (2)   Record the related accumulated depreciation to the depreciation reported in the first step.

           (3)   Depreciation expense may be reported on other lines besides W/S A, lines 3 & 4, of the Medicare cost report. Please record any depreciation expense
                 that is not included on W/S A, lines 3 or 4, but is directly identified or reclassified (A-6) to line 34. You may need to contact your cost report preparer to

           (4)   If depreciation expense is reported on W/S A, line 34, of the Medicare cost report, the related accumulated depreciation needs to be identified. Record
                 the accumulated depreciation related to the depreciation expense here. You may need to contact your cost report preparer to determine this.

         Long Term Debt Information

           (5)   Record interest and amortization of financing costs reported on W/S A, lines 3 and 4, of the Medicare cost report. List the amounts in the appropriate
                 lines on the spreadsheet.

           (6)   Record the related principal payments of the debt's interest expense reported in the first step.

           (7)   Interest and amortization of financing costs may be reported on other lines besides W/S A, lines 3 & 4, of the Medicare cost report. Please record any
                 expense that is not included on W/S A, lines 3 or 4, but is directly identified or reclassified (A-6) to line 34. You may need to contact your cost report

           (8)   If interest and amortization expense is reported on W/S A, line 34, of the Medicare cost report, the related principal payments of the debt needs to be
                 identified. Record the principal payments related to the interest and amortization expense here. You may need to contact your cost report preparer to


Medicare Cost Report Information

                 Refer to Worksheet B, Part I and Worksheet B-1 of the Medicare cost report.

         Worksheet B Part I

           (9)   From Worksheet B, Part I, Report the amounts from column 0 - Net Expenses for Cost Allocation to the appropriate line highlighted in yellow.

                 Amounts will be summarized as described below on the spreadsheet.

         Worksheet B-1

          (10) From Worksheet B-1, Report the statistics in the proper columns on the spreadsheet.

                 Amounts will be summarized in the same manner as the amounts are summarized for the Worksheet B, Part I entries.
                                                                Worksheet
                                                                 B, Part I
                                                                 Column
            GENERAL SERVICE COST CENTERS                            0
 1   0100   Old Capital Related Costs-Buildings and Fixtures
 2   0200   Old Capital Related Costs-Movable Equipment                      Report these amounts on assigned lines of the spreadsheet
 3   0300   New Capital Related Costs-Buildings and Fixtures       191,000
 4   0400   New Capital Related Costs-Movable Equipment            181,000   Please disregard any lines from the Medicare Cost Report
 5   0500   Employee Benefits                                      748,000   that are not listed here.
 6   0600   Administrative and General                             950,000
 7   0700   Maintenance and Repairs
 8   0800   Operation of Plant                                     348,000
 9   0900   Laundry and Linen Service                               79,000
10   1000   Housekeeping                                           116,000
11   1100   Dietary                                                401,000
12   1200   Cafeteria
13   1300   Maintenance of Personnel
14   1400   Nursing Administration                                  67,000
15   1500   Central Services and Supply
16   1600   Pharmacy
17   1700   Medical Records & Medical Records Library              133,000
18   1800   Social Service
19          Other General Service (specify)
20   2000   Nonphysician Anesthetists
21   2100   Nursing School                                                   Not Used on spreadsheet, do not enter costs.
22   2200   Intern & Res. Service-Salary & Fringes (Approved)
23   2300   Intern & Res. Other Program Costs (Approved)
24   2400   Paramedical Ed. Program (specify)
                INPATIENT ROUTINE SERVICE COST CENTERS
25   2500   Adults and Pediatrics (General Routine Care)           517,000
26   2600   Intensive Care Unit                                              Report these amounts on the Hospital line of the spreadsheet.
27   2700   Coronary Care Unit
28   2800   Burn Intensive Care Unit
29   2900   Surgical Intensive Care Unit
30          Other Special Care (specify)
31   3100   Subprovider (specify)
33   3300   Nursery
34   3400   Skilled Nursing Facility                             1,335,000   Report these amounts on the Nursing Facility line of the
35   3500   Nursing Facility                                                 spreadsheet.
36   3600   Other Long Term Care
            ANCILLARY SERVICE COST CENTERS
37   3700   Operating Room                                          53,000   Total and report these amounts as Ancillary Service Costs on
38   3800   Recovery Room                                                    the spreadsheet
39   3900   Delivery Room and Labor Room                             2,000
40   4000   Anesthesiology
41   4100   Radiology-Diagnostic                                   257,000
42   4200   Radiology-Therapeutic
43   4300   Radioisotope
44   4400   Laboratory                                             471,000
45   4500   PBP Clinical Laboratory Services-Program Only
46   4600   Whole Blood & Packed Red Blood Cells
47   4700   Blood Storing, Processing, & Trans.
48   4800   Intravenous Therapy
49   4900   Respiratory Therapy
50   5000   Physical Therapy                                       216,000
51   5100   Occupational Therapy
52   5200   Speech Pathology
53   5300   Electrocardiology                                       62,000
54   5400   Electroencephalography
55   5500   Medical Supplies Charged to Patients                    59,000
56   5600   Drugs Charged to Patients                              138,000
57   5700   Renal Dialysis
58   5800   ASC (Non-Distinct Part)
59          Other Ancillary (specify)                               20,000
         OUTPATIENT SERVICE COST CENTERS
 60 6000 Clinic                                               30,000   Total and report these amounts as Outpatient Service Costs
 61 6100 Emergency                                           160,000   on the spreadsheet
 62 6200 Observation Beds
 63      Other Outpatient Service (specify)
         OTHER REIMBURSABLE COST CENTERS
 64 6400 Home Program Dialysis                                         Total and report these amounts as Other Reimbursable Costs
 65 6500 Ambulance Services                                            on the spreadsheet
 66 6600 Durable Medical Equipment-Rented
 67 6700 Durable Medical Equipment-Sold
 68      Other Reimbursable (specify)
 69      Outpatient Rehabilitation Provider (specify)
 70 7000 Intern-Resident Service (not appvd. tchng. prgm.)
 71 7100 Home Health Agency
         SPECIAL PURPOSE COST CENTERS
 82 8200 Lung Acquisition                                              Total and report these amounts as Special Purpose Costs on
 83 8300 Kidney Acquisition                                            the spreadsheet
 84 8400 Liver Acquisition
 85 8500 Heart Acquisition
 86      Other Organ Acquisition (specify)
 88 8800 Interest Expense
 89 8900 Utilization Review-SNF
 90 9000 Other Capital-Related Costs (see instructions)
 92 9200 Ambulatory Surgical Center (Distinct Part)
 93 9300 Hospice
 94      Other Special Purpose (specify)
 95      SUBTOTALS (sum of lines 1-94)
         NONREIMBURSABLE COST CENTERS
 96 9600 Gift, Flower, Coffee Shop, & Canteen                  4,000   Total and report these amounts as Nonreimbursable Costs
 97 9700 Research                                                      on the spreadsheet
 98 9800 Physicians' Private Offices
 99 9900 Nonpaid Workers
100      Other Nonreimbursable (specify)                     950,000
101      TOTAL (sum of lines 95-100)

				
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