write a one-page assessment of the fiscal condition of CGWO, evaluating what each ratio (that you computed) tells you about the organization’s fiscal health. Ensure your response covers the following details:
-
Typical financial indicators:
- Liquidity ratio (current ratio – current assets / current liabilities).
- Burden of debt ratio (total debt / total assets).
- Adequacy of available resources ratio (net assets without donor restrictions / expenses).
- Current fiscal performance (operating surplus or deficit / total revenues).
-
Financial indicators specific to not-for-profits:
- Fund-raising ratio (fund-raising expense + administrative costs) / total contributions and grants revenue).
- Program ratio (program expenses / (program expenses + fund-raising expenses + administrative costs).
- Contribution and grants ratio (revenue from contributions and grants / total revenues).
- Revenues from services ratio (revenue from program fees / total revenues).
- Ensure that your explanation is supported by at least two appropriate sources.