Financial Performance of Ramsay Health Care Essay Example

Financial Performance of Ramsay Health Care Essay Example Financial Performance of Ramsay Health Care Paper Financial Performance of Ramsay Health Care Paper The firm chosen, Ramsay Health Care, is a group of companies that primarily focus on providing medical attention in a large portfolio of hospitals.   Their main aim is offering a service of utmost quality to their targeted clients.   The hospitals of this corporation are located in Australia. Financial Performance of Ramsay Health Care The profitability ratios adopted indicate that the profitability of Ramsey Health Care Limited and its consolidated entities improved from 2005 to 2006. :    The efficiency in the utilization of the firm’s resources to generate profits increased by 13%.   A high percentage in the return on capital employed is always desirable because it provides a margin of safety to the organization from unforeseeable changes, like economic downturns, new competitive products and more. Presently the return on capital employed of 25.59% is high to acceptable standards to sustain the aforesaid margin of safety. References: Lewis R.; Pendrill D. (1996).   Advanced Financial Accounting.   Fifth Edition.   London: Pitman Publishing. Ramsey Health Care. Annual Report 2006 (on line). Available from: ramsayhealth.com.au/rhc/investors/docs/Market_Briefings_24102006104934.pdf (Accessed 3rd April 2007). Randall H. (1999).   A Level Accounting.   Third Edition.   Great Britain:   Ashford Colour Press Ltd.