Regardless of where your health care career takes you, finance is an important part of the health care system. Finance might not be your professional calling, though it is important you have a working knowledge of the terminology and tools of finance and the stakeholders in the health care industry.
Determining Values and Rates of Return, Selected Videos
Project Selection in Excel, Selected Videos
Calculate a Company’s Breakeven Point
Financial Ratios and Determining the Unpaid Inventory of Walmart
Full Answer Section
Calculating a Company's Breakeven Point:
- Concept: The breakeven point is the point at which a company's total revenue equals its total costs. It indicates the level of sales required to cover all expenses and not make a profit or loss.
- Resources:
4. Financial Ratios and Determining Unpaid Inventory of Walmart:
- Financial Ratios: These are metrics used to analyze a company's financial health, performance, and liquidity. Examples include gross margin, debt-to-equity ratio, and current ratio.
- Unpaid Inventory (for Walmart): This refers to the value of inventory purchased by Walmart that hasn't been paid for yet. Financial ratios like inventory turnover can indirectly indicate this value, but companies don't typically disclose specific unpaid inventory figures.
- Resources:
Additional Tips:
- Consider enrolling in online courses or attending workshops to gain a more comprehensive understanding of healthcare finance.
- Many healthcare organizations offer internal training programs on financial management for their employees. Explore opportunities within your workplace.
- Stay updated on current healthcare finance trends and policies by reading industry publications and attending healthcare conferences.
By familiarizing yourself with these financial concepts and tools, you'll be better equipped to navigate the financial aspects of your healthcare career and contribute to the overall financial health of your organization.
Sample Answer
Here's a breakdown of the financial concepts you mentioned, along with resources to deepen your understanding:
1. Determining Values and Rates of Return:
- Concept: This refers to calculating the intrinsic value of an investment and the potential return it can generate.
- Resources:
2. Project Selection in Excel:
- Concept: This involves using Excel tools like Net Present Value (NPV) and Internal Rate of Return (IRR) to evaluate potential projects and choose the ones that offer the best financial return for the organization.