Determining the industry average data

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Sara Williams has recently applied for the position of administrator of Winter Park Rehabilitation and Nursing Home and has been invited for an interview. Because Sara wants to be well prepared for the interview, she compiled the following 2016 financial data for Winter Park Rehabilitation and Nursing Home with the intent of performing a rough financial condition analysis.

Total revenue

$20,264,268

Net income

$1,215,856

Total assets

$13,509,512

Total liability

$6,004,228

Also, she identified the following industry average data:

Total margin 5.2%

Total asset turnover 1.4

Equity multiplier 2.3

Return on equity 13.5%

Using Du Pont analysis, what judgement should Sara make about Winter Park Rehabilitation and Nursing Home's financial condition? Please show your work.

Reference no: EM131721617

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