Financial and Strategic Planning Assignment Example | Topics and Well Written Essays - 500 words - 1

Financial and Strategic Planning - Assignment Example ugh this venture, the hospital’s management will establish the feasibility, stability and the expected benefits of their ambitious plans and projects. Identifying the financial trends starts with report preparations generated by ratios or financial statements’ information, plus other financial reports. The Hospital decision makers will prop up their decisions on these findings and conclusions. Hospital profitability is a sure trend that ought to be assessed by the responsible financial analysts. Assessing the facility’s profitability entails establishing its income-earning ability plus the ability to protract growth in the long-term and short-term periods (Evans, 2000). Solvency is also a trend that ought to be addressed by the hospital. Solvency is the hospital’s ability to fulfill commitments to creditors plus other variant third parties, both in the short and long-term periods. Another trend worth looking at is the liquidity aspect of the hospital. This is translates to the hospital’s capacity to maintain positive income flow, and meeting immediate obligations. Solvency and Liquidity will be derived from the entity’s balance sheet which will outline the financial state of the hospital from specific time point(s). Stability trend of the hospital ought to be drawn to portray the hospital’s capability to stay put in operation. Deriving the stability trend will unearth the hospital’s capability to remain fully functional without sustaining major losses when in full-swing operation. The hospital’s management ought to look at labor trends where forecasts on the labor needs and the anticipated production as pertains the expansion of the facility. Decrease or increase of production will translate to alterations on production-related costs and other variant support services (Evans, 2000). This is linked to administrative trends that have characterized the hospital’s management and operations. Administrative trends encompass issues such as