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Baldwin General is a hospital in the Summerdale metropolitan area that has seen a decline in...

Baldwin General is a hospital in the Summerdale metropolitan area that has seen a decline in revenues and investors backing out of its proposed new surgical wing. Consider the following data, and perform a DuPont analysis of the hospital:

  • Net Income          $1,218
  • Total Equity         $2,118
  • Total Revenues    $28,613
  • Total Assets         $9,869

Across town, Creek Park Hospital is performing well and just completed two additions to serve more patients. Consider the following DuPont analysis of Creek Park:

Creek Park ROE = Total margin x Total asset turnover x Equity multiplier

                            =           3.8%    x                     2.1       x            3.2

Perform a comparative analysis of Baldwin and Creek Park, and explain what issues you think Baldwin is experiencing in expenses, total asset turnover, and financial leverage. In your financial statement analysis, explain what steps you think Baldwin should take to improve its financial condition.

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Answer #1

(D Dll Pont analysis is used to Calcula-v Retuur ns based on om egut, based om many faci ors multiplier ake theRetan.an eyaly 1, be the gtis fackion of epaty holde tin meui

Similarly for Baldui,n Revenue LUNCH 3 9869-aug Com PaaVe anay ss Baldwin 4 36 t

AS, a Compatie analss, Balduwin is the best 1nthe industry Lohen Compad to c clato LUNCH Ganinunlh d etining mct f vevenue is clectining, then, ers tu, noves ou get decline.

high meagins it an vedu LOİ ! tal timately lead to inco-rd

Hope it helps,

Thank u.

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