Financial Ratios
HSM260
January 18, 2015

1-Current Ratio-the current ratio formula is current assets are divided by the current liabilities. This ratio is primarily used to give a perception of the organization’s capability of paying back its short term liabilities with short term assets. Data received from Appendix D 2002 states current assets of $104,296.00. Current liabilities equal $139,017.00. The current ratio is 0.75
2-Long-term solvency ratio-Net income (or after-tax profit) plus depreciation divided by short-term liabilities plus long-term liabilities. Appendix D 2002 data provided assets totaling $391,270.00. Liabilities totaling $310,246.00. The long-term solvency ratio is 1.26.
3-Contribution ratio-the largest revenue source is divided by all revenues. Appendix D 2002 data provides revenues equaling $617,169.00. The total revenues tally $1,165,065.00 bringing the contribution ratio to 0.53
4-Program and expense ratio- all expenses for a particular program are divided by the expenses of the business including the program. The total program and expense totals $716,105.20. Total expenses are $1,185,008.00. The program and expense ratio is 0.6
5-General and management and expense ratio-total general and management and expenses are divided by the total expenses. According to Appendix D 2002 the general and management and expenses totaled $351,000.00. The total expenses equaled $1,185,008.00. The ratio equals 0.30.
6-Fund-raising and expense ratio-total of all fund-raising expenses divided by the total expenses. The fund-raising expenses totaled $117,903.00. The total expenses totaled $1,185,008.00. Fund-raising and expense ratio is 0.17
7-Revenue and expense ratio-total revenues are divided by total expenses. Total revenues came to a total of $1,165,065.00. Total expenses totaled $1,185,008.00. The revenue and expense ratio is