Page 46 - NCCAA Finance Board Accountability
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Ratios
Current Ratio Current Assets / Current Liabilities
The days receivable ratio, also known as the
average collection period, is a financial metric
Working Current Assets – Current Liabilities that measures the average number of days it
Capital
takes for a nonprofit organization to collect its
Quick Ratio Cash + Securities + Accounts accounts receivable. It provides insight into the
Receivable/Current Liabilities organization's effectiveness in collecting funds
Debt to Asset Total Liabilities / Total Assets owed by donors or other sources.
A lower days receivable ratio is generally
Debt to Total Liabilities / Net Assets
Equity considered more favorable, as it indicates that the
organization collects its receivables more quickly
Asset Total Unrestricted Revenues / Average and efficiently.
Turnover Total Assets
Days Accounts Receivable *365 /
Receivable Unrestricted Revenue
Profit Margin Increase in Unrestricted Net Assets /
Unrestricted Revenue
