Page 21 - Non-Profit Finance

Key

Ratios

Ratio Measures Calculation Suggested Standard

Days Cash on Hand # of days of operating First get the daily 6 months
expenses that the agency operating cost by taking
could pay with current Operating expense / 365
cash availability Then, / the cash by the
daily operation cost

Budget vs Actual % Projection of anticipated First, subtract the Varies by Monthly,
revenues and expenses to budgeted amount and the Quarterly, Yearly, etc.

actual revenue and actual amount
expenses Divide the above by the
original budget amount
and * 100

Debt to Asset Ratio The percentage of the Total liabilities / Total > .5 most assets are
agency assets finance by assets finance via debt
creditors < .5 most assets are
finance via equity