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FM007: Analyze Financial Data: Make recommendations for organizational decisions based on analyses of financial data.

Assessment Rubric

Rubric Criteria

Needs Improvement

Meets Expectations

Exceeds Expectations Part 1: Analyze Organizational Financial Data Learning Objective 1.1:

Calculate and interpret net sales, operating expenses, operating income, and net income data to determine significance of trend result.

Analysis does not include or includes an incomplete or inaccurate calculation of the 5-year net sales, operating expenses, operating income, and net income. Analysis does not include or includes an inaccurate, unclear, or incomplete interpretation of the data and/or explanation of the significance of the trend result.

Analysis accurately calculates the 5-year net sales, operating expenses, operating income, and net income. Analysis accurately interprets the data and effectively uses it to explain the significance of the trend result.

Analysis demonstrates the same level of achievement as “Meets,” plus the following: Analysis includes an explanation of the significance of the trend results including detailed examples or illustrative graphics.

Learning Objective 1.2: Calculate and interpret profit margin, asset turnover, return on assets, and return on net worth data to assess a company’s profitability.

Analysis does not include or includes an incomplete or inaccurate calculation of the 5-year total profit margin, asset turnover, return on assets, and/or return on net worth. Analysis does not include or includes an inaccurate, unclear, or incomplete interpretation of the data and/or explanation of the company’s profitability.

Analysis accurately calculates the 5-year total profit margin, asset turnover, return on assets, and return on net worth. Analysis accurately interprets the data and uses it to assess the company’s profitability.

Analysis demonstrates the same level of achievement as “Meets,” plus the following: Analysis provides additional context for these calculations by comparing them to other healthcare organizations or figures for the industry.

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Rubric Criteria

Needs Improvement

Meets Expectations

Exceeds Expectations Learning Objective 1.3: Calculate and interpret current ratio, day’s cash on hand, and working capital data to evaluate a company’s liquidity.

Analysis does not include or includes an inaccurate or incomplete calculation of the 5-year current ratio, day’s cash on hand, and/or working capital. Analysis does not include or includes an inaccurate or unclear interpretation of calculations to evaluate the company’s liquidity.

Analysis accurately calculates the 5-year current ratio, day’s cash on hand, and working capital. Analysis accurately and clearly interprets the data in order to explain the company’s liquidity.

Analysis demonstrates the same level of achievement as “Meets,” plus the following: Analysis provides additional context for these calculations by comparing them to other healthcare organizations or figures for the industry.

Learning Objective 1.4: Calculate debt ratio and times interest earned ratio to evaluate a company’s long-term solvency.

Analysis does not include or includes an inaccurate or incomplete calculation of the 5-year debt ratio and times interest earned ratio. Analysis does not include or includes an inaccurate or incomplete interpretation of calculations to evaluate the company’s long-term solvency.

Analysis accurately calculates the 5-year debt ratio and times interest earned ratio. Analysis accurately and clearly interprets the data in order to explain the company’s long-term solvency.

Analysis demonstrates the same level of achievement as “Meets,” plus the following: Analysis provides additional context for these calculations, by comparing them to other healthcare organizations or figures for the industry.

Learning Objective 1.5: Conduct a DuPont analysis to determine the organization’s DuPont characteristics and trends across an analysis period.

Analysis does not include or includes an inaccurate DuPont analysis for each of the five years or the analysis is only provided for some of the five most recent years.

Analysis accurately applies a DuPont analysis for each of the five years. Analysis accurately and clearly interprets the company’s individual DuPont characteristics and trends.

Analysis demonstrates the same level of achievement as “Meets,” plus the following: Analysis provides additional context for these calculations, by

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Rubric Criteria

Needs Improvement

Meets Expectations

Exceeds Expectations Analysis does not include or includes an inaccurate or unclear interpretation of the company’s DuPont analysis characteristics and trends.

comparing them to other healthcare organizations or figures for the industry.

Learning Objective 1.6: Make recommendations for management decisions based on evaluation of financial information.

Analysis does not include or includes an unclear recommendation for or against the proposal to add a centralized nurse triage line of business. Analysis does not include or includes an unclear or incomplete rationale supporting the recommendation for or against the purchase or the data cited in the rationale is irrelevant or unclear.

Analysis includes a recommendation for or against the proposal to add a centralized nurse triage line of business. Analysis includes clear and logical rationale supporting the recommendation and data is used to support the recommendation.

Analysis demonstrates the same level of achievement as “Meets,” plus the following: Analysis provides additional rationale for this recommendation by comparing this company’s data to industry benchmarks.

Rubric Criteria

Needs Improvement

Meets Expectations

Exceeds Expectations Part 2: Conducting an Operating Indicator Evaluation Learning Objective 2.1: Apply mathematical principles to accurately calculate cash inflows and outflows.

Report does not include or includes an inaccurate or incomplete calculation of cash inflows and cash outflows or response is not relevant to the case presented.

Report accurately calculates the cash inflows and outflows for each year in the case presented.

Report demonstrates the same level of achievement as “Meets,” plus the following: Report provides additional context for these calculations, by

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commenting on how they compare to other healthcare organizations or figures for the industry.

Learning Objective 2.2: Apply strategies to accurately calculate the profitability of a capital project.

Report does not include or includes an incomplete or inaccurate calculation of the NPV, IRR, MIRR, payback period, and discounted payback period of a capital project.

Report accurately calculates the NPV, IRR, MIRR, payback period, and discounted payback period of a capital project.

Report demonstrates the same level of achievement as “Meets,” plus the following: Report provides additional context for these calculations, by commenting on how they compare to other healthcare organizations or figures for the industry.

Learning Objective 2.3: Make recommendations for management decisions based on operative indicator evaluation.

Report does not include or includes a vague recommendation as to whether the project in the case presented is acceptable. Report does not include a rationale or does not include information in the rationale from calculations or includes misinformation in the rationale from calculations, and/or it does not highlight (or erroneously highlights) the costs and benefits of implementing the project, and/or it does not take into consideration (or misinterprets)

Report states a clear recommendation as to whether the project in the case presented is acceptable. Report provides a clear and logical rationale for supporting the recommendation. Rationale includes information from calculations to support the recommendation. Rationale highlights the costs and benefits of implementing the project.

Report demonstrates the same level of achievement as “Meets,” plus the following: Rationale includes a compelling argument for the recommendation based on the overall evaluation.

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the corporate policy for accepting the capital project.

Rationale takes into consideration the corporate policy for accepting the capital project.

Rubric Criteria

Needs Improvement

Meets Expectations

Exceeds Expectations Part 3: Conduct a Budgeting Evaluation Learning Objective 3.1: Calculate Jiranna’s profit forecast and related projections.

Report does not include or includes incomplete or inaccurate calculations of Jiranna’s original profits and related projections, or the calculations are not relevant to the case presented. Report does not include or includes an unclear explanation of the calculations.

Report includes complete and accurate calculations of Jiranna’s original profits and related projections for the case presented. Report includes clear explanations of each calculation.

Report demonstrates the same level of achievement as “Meets,” plus the following: In addition to making a correct projection, report effectively considers all relevant factors such as taxes, depreciation, etc. that need to be considered in deciding Jiranna’s profit projection.

Learning Objective 3.2: Identify outpatient service lines that are over budget and those that are over budget after accounting for workload increases.

Report does not include or includes incomplete or inaccurate calculations of outpatient service lines that are over budget and/or outpatient service lines that are over budget after accounting for workload increases or calculations are not relevant to the case presented.

Report includes accurate and complete calculations of outpatient service lines that are over budget and outpatient service lines that are over budget after accounting for workload increases for the case presented. Report provides a clear explanation for each calculation.

Report demonstrates the same level of achievement as “Meets,” plus the following: Report includes a chart or graph to support the explanation of the calculations.

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Report does not include or includes unclear explanation of the calculations.

Learning Objective 3.3: Recommend actions to be taken to improve performance at Jiranna as a fee-for-service healthcare organization.

Report does not recommend or recommends only one act that should be taken at the mid-year point for Jiranna as a fee-for-service healthcare organization or two actions are recommended but are incomplete or illogical. Report is not relevant to the case presented in terms of focusing on the problem areas and/or identifying those who might provide ideas for “best practices” based on their performance.

Report clearly details recommendations for two logical actions that should be taken at the mid-year point for Jiranna as a fee-for-service healthcare organization. Report is relevant to the case presented, focusing on the problem areas and identifying those who might provide ideas for “best practices” based on their performance.

Report demonstrates the same level of achievement as “Meets,” plus the following: Report recommends more than two logical actions that should be taken at the mid-year point for Jiranna as a fee-for-service healthcare organization.

Learning Objective 3.4: Recommend actions to be taken for Jiranna as a capitated healthcare organization.

Report does not recommend or recommends only one action that should be taken at the mid-year point for Jiranna as a capitated healthcare organization, or two actions are identified but are not logical or related to the case presented. Actions recommended do not take into consideration the expectations of Jiranna as a capitated healthcare organization.

Report clearly details recommendations for two logical actions that should be taken at the mid-year point for Jiranna as a capitated healthcare organization. Actions recommended take into consideration the expectations of Jiranna as a capitated healthcare organization.

Report demonstrates the same level of achievement as “Meets,” plus the following: Report identifies more than two clear and logical actions that should be taken at the mid-year point for Jiranna as a capitated healthcare organization.