Analysis of Financial Statements of Afzalipour Hospital in Kerman, Iran, During the COVID-19 Pandemic

Document Type : Original Article

Authors

1 Health Services Management Research Center, Institute for Futures Studies in Health, Kerman University of Medical Sciences, Kerman, Iran

2 Social Determinants of Health Research Center, Institute for Futures Studies in Health, Kerman University of Medical Sciences, Kerman, Iran

3 Medical Informatics Research Center, Institute for Futures Studies in Health, Kerman University of Medical Sciences, Kerman, Iran

10.34172/jhad.1192

Abstract

Background: Financial ratio analysis enables hospitals to enhance their efficiency and productivity and to allocate financial resources optimally. The present study aimed to analyze the financial ratios of Afzalipour Hospital in Kerman.
Methods: This descriptive study was conducted in 2024. First, data related to the comprehensive balance sheets of Afzalipour Hospital from 2017 to 2022 were collected using the RoozAmad software. Financial ratios, including liquidity ratios, activity ratios, profitability ratios, and leverage ratios, were calculated using Microsoft Excel 2019.
Results: The highest proportion of hospital revenues was attributed to received grants (governmental resources) and quasi-commercial revenues (generated through the hospital’s dedicated operations). The largest expenditure share was related to the costs of goods and services consumed. The mean current ratio and quick ratio were 0.92 and 0.87, respectively. The average collection period for receivables was 327 days. Total asset turnover was 1.14. The average profit margin was 31%. The total debt-to-asset ratio was 0.96.
Conclusion: The hospital faces difficulties in repaying its debts. It is essential to adopt managerial strategies aimed at increasing internally generated revenues and reducing dependence on external financial support. Innovative approaches are also required to shorten the receivables collection period and improve asset turnover, particularly under conditions such as the COVID-19 pandemic.

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Main Subjects

References

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Health and Development Journal
Volume 14, Issue 1
May 2025
Pages 1-9

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History

  • Receive Date: 10 June 2025
  • Revise Date: 02 November 2025
  • Accept Date: 23 November 2025

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