Operational analysis and financial statement analysis


Question1. What is the primary differentiation between operational analysis and financial statement analysis?

Question2. Why are both types of analyses useful to healthcare investors and managers?

Question3. Should financial statement analyses be conducted only on a historical data? Describe your answer.

Question4. Suppose that the Badger Manor and Old Gatorland, two operators of nursing homes, have fiscal years that end at different times say, one in June and one in December. Would this fact cause any problems when comparing ratios among the two businesses?

Question5. Suppose that two companies which operate walk-in clinics both have the same December year end, but one (a winter resort) is based in Aspen, while the other (a summer resort) operates on Nantucket Island. Would this lead to problems in the comparative analysis?

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Financial Accounting: Operational analysis and financial statement analysis
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