Analyzing Financial Statements
Melanie Bolanger
HSM/260
April 19, 2015
Sean Jones
Analyzing Financial Statements

Calculating Ratios
2003 2004 Current Ratio 82,058.00/93,975=0.87 302,902/337,033= 0.90 Long Term Solvency Ratio 359,863/259,979= 1.38 699,004.00/338,937= 2.06 Contribution Ratio 632,889.00/1,244,261= 0.51 1,078,837.00/2,191,243= 0.49

Program/Expense Ratio 945,580.00/ 1,316,681.00 = 0.72 1,526,312/192,131= 0.77 General Management / Expense Ratio 371,101.00/1,316,681= 0.28 445,819.00/1,972,131= 0.23 Fund Raising/ Expense Ratio 632,889.00/1,316,681= 0.48 1,078,837.00/1,972,131= 0.55

Revenue/ Expense Ratio

1,244,261.00/1,316,681.00= 0.94 2,191,243.00/1,972,131.00= 1.11

Importance of Ratios Current Ratio – The purpose of the current ratio is to assess a private nonprofit human service agency’s liquidity. Current Ratio is important because it allows the agency to make sure they are not facing any liquidity problems. Liquidity means the extent to which the agency has cash and other assets readily convertible into cash to cover current operating expenses. Contribution Ratio – The purpose of the contribution ratio is to assess the agency’s dependency on its major revenue source. Contribution ratio is important because it ensures the financial viability of the agency. Program Expense Ratio – The programs/expense Ratio means that a private non-profit human service