Analyzing Financial Statements
Analyzing Financial Statements
December 16, 2012
Regina Campbell
Calculate the following: Current ratio, long-term solvency ratio, contribution ratio, programs and expense ratio, general and management and expense ratio, fund-raising and expense ratio, and revenue and expense ratio for the years 2003 and 2004.
2003 2004
Current Ratio: .87 .90 Long Term Solvency Ratio: 1.38 2.06
Contribution Ratio: .51 .49
Programs and expense ratio: .72 .77
General/ management/expense ratio: .28 .23
Revenue and Expense ratio: .94 1.11
Include the current ratio, long-term solvency ratio, contribution ratio, programs and expense ratio, general and management and expense ratio, fund-raising and expense ratio, and revenue and expense ratio calculated in the Week Four Assignment.
2002
Current Ratio: .75
Long Term Solvency Ratio: 1.26
Contribution Ratio: .53
Programs and expense ratio: 1.00
General/ management/expense ratio: .30
Revenue and Expense ratio: .98
Provide a 200- to 300-word explanation of the importance of each ratio for all three years listed in Appendix D. Include a statement of whether the organization’s financial picture has improved or not within the 3-year period specified in Appendix D.
The current ratio is something that is used to find out the current liquidity of nonprofit human services organizations.
The long-term solvency ratio is just what it means, to determine what the long range of financial solvency of the organization. As well as a lay out of they plan to pay the yearly expenses.
The contribution ratio is used to assess the dependency of an organization on its major revenue source.
December 16, 2012
Regina Campbell
Calculate the following: Current ratio, long-term solvency ratio, contribution ratio, programs and expense ratio, general and management and expense ratio, fund-raising and expense ratio, and revenue and expense ratio for the years 2003 and 2004.
2003 2004
Current Ratio: .87 .90 Long Term Solvency Ratio: 1.38 2.06
Contribution Ratio: .51 .49
Programs and expense ratio: .72 .77
General/ management/expense ratio: .28 .23
Revenue and Expense ratio: .94 1.11
Include the current ratio, long-term solvency ratio, contribution ratio, programs and expense ratio, general and management and expense ratio, fund-raising and expense ratio, and revenue and expense ratio calculated in the Week Four Assignment.
2002
Current Ratio: .75
Long Term Solvency Ratio: 1.26
Contribution Ratio: .53
Programs and expense ratio: 1.00
General/ management/expense ratio: .30
Revenue and Expense ratio: .98
Provide a 200- to 300-word explanation of the importance of each ratio for all three years listed in Appendix D. Include a statement of whether the organization’s financial picture has improved or not within the 3-year period specified in Appendix D.
The current ratio is something that is used to find out the current liquidity of nonprofit human services organizations.
The long-term solvency ratio is just what it means, to determine what the long range of financial solvency of the organization. As well as a lay out of they plan to pay the yearly expenses.
The contribution ratio is used to assess the dependency of an organization on its major revenue source.
References: Fisher, Robert L. 2001. “The sea change in nonprofit human services: A critical assessment of outcomes measurement.” Families in Society: The Journal of Contemporary Human Services.” Nov/Dec. Public Budgeting & Finance, Volume 19, Issue 1, pages 68–88, March 1999