Page 47 - NCCAA Finance Board Accountability
P. 47
Ratios
Current Ratio Current Assets / Current Liabilities
Profit margin is a financial metric that measures
the profitability of an organization by determining
Working Current Assets – Current Liabilities the percentage of revenue that remains as profit
Capital
after accounting for all expenses.
Quick Ratio Cash + Securities + Accounts
Receivable/Current Liabilities However, the term "profit" is not typically used in
Debt to Asset Total Liabilities / Total Assets the context of nonprofit organizations, as their
primary focus is not generating profits for
distribution to shareholders or owners.
Debt to Total Liabilities / Net Assets
Equity
Asset Total Unrestricted Revenues / Average
Turnover Total Assets
Days Accounts Receivable *365 /
Receivable Unrestricted Revenue
Profit Margin Increase in Unrestricted Net Assets /
Unrestricted Revenue
