Financial performance analyses of selected private hospitals in the first district of Rizal Kaychelle Ann Batalla, Weddy Anne Capoquian, Bryan P. Cuevas

Thesis Bachelor of Science in Business Administration major in Financial Management University of Rizal System, Binangonan 2018

Includes bibliographical references.

This study primarily focused on the financial performance analysis of selected private hospitals in the first district of Rizal. The descriptive method of research chosen by the researchers was appropriate to use in this study because the information derived from the financial statements used for the preparation of financial ratios and vertical and horizontal analysis in determining financial performance of the hospital all throughout the covered period. Data gathered were analyzed and interpreted using trend analysis and financial ration; vertical and horizontal analysis in determining the balances of the financing sources of the hospital. The researchers used the audited financial statements of the hospitals from Securities and Exchange Commission (SEC) covering period from 2012-2016. To determine the financial performance of the hospital, the researchers used financial ratio in vertical and horizontal analysis using profitability. Motivation of the financial analysis users in order to efficiency manage its finance, every company needs to develop a systematic approach to the analysis of its financial statements. Financial statements analysis objectives are to reviewing the company's performance over past periods. Assessing the current financial position and forecasting the profitability trends because the main goal of every business is the generation of revenue for its owners and investors. Analyzing company's current balance sheet and income statement is the most effective way to estimate the condition of a company here and now. Reviewing firm's asset and liabilities, checking the profitability margins for the current period is necessary for all the users in terms of operative and long term decision making. Based on the summary findings and conclusion: Manila East Medical Center should minimize its operating expenses and total debt and liquid asset because their got the lowest liquidity ratio and also some hospitals got the highest ratio above in one, it means they have the ability too pay off short term debt obligation with cash on hand or short term assets. Companies with excessively how liquidity ratios place themselves at risk of default and may find it difficult to raise capital. Binangonan Lakeview Hospital, Inc. San Isidro Hospital, Inc. and Angono Medics got the highest liquidity ratio. In terms of debt controlling, San Isidro Hospital Inc., and Angono Medics Hospital Inc. got the lowest debt to equity ratio, the lowest this ratio the better because comparing its equity to liabilities. In terms of debt ratios all of the four hospitals got the lowest ratio, in short there are solvency to pay their debt obligation using assets not shareholders equity. In terms of profitability ratio, the higher this ratio the better, because its compare all of the income or profit into assets, and sale and equity or how their used its capital to generate revenue, based on the result, some hospital got positive result base on the category but decline in some ratio category, some result had favorable and some had unfavorable, in short some are sustain its good profitability and liquidity condition and minimize its total debts.