Week 10 Ratio’s


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.