Page 40 - NCCAA Finance Board Accountability

Ratios

Current Ratio Current Assets / Current Liabilities
The current ratio is a financial ratio that measures a
company's ability to pay its short-term liabilities

Working Current Assets – Current Liabilities with its short-term assets. It is calculated by
Capital
dividing current assets by current liabilities. A ratio

Quick Ratio Cash + Securities + Accounts above 1 is generally considered favorable. A
Receivable/Current Liabilities current ratio higher than 1 indicates that the

Debt to Asset Total Liabilities / Total Assets organization has more current assets than current
liabilities, suggesting it has sufficient resources to
meet its short-term obligations.
Debt to Equity Total Liabilities / Net Assets

Asset Turnover Total Unrestricted Revenues / Average
Total Assets

Days Accounts Receivable *365 /
Receivable Unrestricted Revenue

Profit Margin Increase in Unrestricted Net Assets /
Unrestricted Revenue