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Which revenue should I use for these formulas?

I have to plug in data from a hospital income statement, but in solving the formulas, do not know which values to use.

I have Patient Revenues, Deductions from revenue, Net Patient Revenue, Other Operating Revenues, and Total Revenues to chose from.

In figuring out the Net Profit Margin (NPR=Net Income/Revenue), which revenue value should I ues?

Same for Asset Turnover (AT=Revenue/Assets)?

Same for Gross Profit (GP=Revenue-COG) and Gross Profit Margin (GPM=Gross Profit/Total Revenue?

Somebody please help! I’m so confused!

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This entry was posted on Wednesday, April 28th, 2010 at 12:26 am and is filed under plug in profits. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

One Response to “Which revenue should I use for these formulas?”

  1. sumbumblebee Says:
    April 28th, 2010 at 1:04 am

    Net profit margin is usually concerned with only your normal revenues, so you would use Net Patient Revenue for that formula.

    Asset Turnover involves total revenues, so use Total Revenue for that formula.

    Gross profit and gross profit margin both use total Revenues as well.

    Hope that helps. :0)