Jiranna Healthcare Balance Sheet December 31, 2020 551363

Balance Sheetjiranna Healthcare Balance Sheet December 31 2013 In Th

Review the financial statements, including the balance sheet, income statement, and cash flows, of Jiranna Healthcare as of December 31, 2013. Analyze the key components of these statements, evaluate the company's financial health, and interpret its financial performance based on the provided data.

Paper For Above instruction

Introduction

Financial analysis plays an essential role in understanding the overall health and performance of healthcare organizations. Balanced financial statements such as the balance sheet, income statement, and cash flow statement provide critical insights into the organization's assets, liabilities, revenues, expenses, and cash management. This paper critically examines Jiranna Healthcare’s financial statements for the fiscal year ending December 31, 2013, with the objective of evaluating its financial stability, operational efficiency, and liquidity position. By analyzing each statement comprehensively, we aim to understand the company's financial standing, identifying strengths, weaknesses, and potential areas for improvement.

Balance Sheet Analysis

The balance sheet provides a snapshot of Jiranna Healthcare’s assets, liabilities, and net assets as of December 31, 2013. The total assets amount to $9,847 thousand, primarily composed of plant and equipment valued at $4,150 thousand. Current assets are $355 thousand, with notable components including receivables totaling $1,400 thousand; however, current assets are relatively low compared to total assets, indicating limited liquidity. The organization’s total liabilities are $3,434 thousand, with current liabilities constituting a significant portion at $295 thousand. Long-term liabilities are $2,750 thousand, suggesting reliance on debt financing, which warrants scrutiny regarding repayment capacity.

The net assets are $4,413 thousand, with the unrestricted portion ($3,113 thousand) representing retained earnings or operational reserves that provide financial flexibility. The substantial proportion of unrestricted net assets indicates that the organization maintains reserve funds that can support ongoing operations and future investments, which is a positive sign of financial health.

Income Statement Evaluation

The income statement reveals gross patient service revenues of $8,050 thousand, with net patient service revenues of $8,450 thousand after deductions. Operating expenses amount to $8,631 thousand, exceeding operating revenues, resulting in an operating loss of approximately $181 thousand. The major expense seems to stem from salaries and wages ($5,800 thousand), which is typical in healthcare settings due to labor-intensive services. Other operating expenses, including supplies, utilities, depreciation, and interest, further strain profitability.

Despite operating losses, the organization reports a non-operating income of $651 thousand, which, along with other non-operating revenues, results in an excess of revenue over expenses of $651 thousand that contributes positively to net assets. The change in net assets is $1,089 thousand, indicating growth in overall net worth, partly due to non-operating income sources, possibly investments or grants.

Cash Flow Analysis

The cash flow statement demonstrates healthy operational cash flows of $1,341 thousand, primarily generated from patient payments, third-party reimbursements, and other operating revenues. Cash payments to employees and suppliers account for significant Outflows; however, operating cash flow remains positive, signifying effective cash management.

Investing activities reflect cash outflows for the purchase of plant assets and long-term investments totaling $1,870 thousand, with proceeds from asset sales amounting to $140 thousand, leading to a net cash outflow of $1,730 thousand. This indicates capital expenditure and investment strategies aimed at maintaining or expanding operations.

Financing activities generated a net inflow of $500 thousand, mainly from bond issuance ($4,000 thousand), financing the capital investments and debt management. The net increase in cash of $111 thousand underpins the organization’s ability to generate cash from operations and leverage external financing for growth initiatives.

Financial Performance and Stability Assessment

Jiranna Healthcare shows signs of financial stability, with positive cash flows and substantial net assets, though operating losses highlight pressure on operating efficiency. The reliance on long-term debts necessitates careful management to ensure sustainability, especially given the limited liquidity indicated by current assets. The organization’s reserves and non-operating income demonstrate a buffer for adverse conditions, supporting strategic investments and debt servicing.

Furthermore, the high costs associated with salaries and wages reflect the labor-intensive nature of healthcare, emphasizing the need for efficiency improvements and cost control. Strategic capital investments in plant and equipment suggest a focus on infrastructure modernization, which could enhance service delivery and operational efficacy.

Conclusion

In conclusion, Jiranna Healthcare’s financial statements for 2013 indicate a company with a solid asset base and growing net assets, backed by positive cash flows despite operating losses. The balance sheet reflects a balanced mix of assets and liabilities, with substantial reserves to support future growth. A key area for improvement is enhancing operational efficiency to achieve profitability in core activities. Sound financial management, strategic investments, and cost controls will be vital for maintaining stability and fostering sustainable growth in future years.

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