Click on each ratio to view the formula, definition, and a basic analysis. Click on the ratio again to hide this information.
Key Financial Data
Operating Income
Operating Expense
Total Revenue Including Other Income
Operating Income + Other (non-operating) Income
Total Expenses Including Other Expense
Operating Expense + Other (non-operating) Expenses
Bad Debt Expense
Net Cash Flow
Net Income + Depreciation + Amortization
EBITDA
Net Income + Interest Paid + Taxes (federal, state, county & city) + Depreciation + Amortization
# of Units
Capital Ratios
Equity (Net Asset) Ratio
Formula: Total Equity (Net Assets) / Total Assets
Definition: Shows the ratio between total equity and total assets.
Analysis: Shows how much of your assets are financed with equity. A higher equity ratio generally means that a company has been conservative in its use of debt to finance its growth and has primarily financed its growth with contributed capital and/or retained earnings.
Unrestricted Net Asset Ratio (nonprofits only)
Formula: Unrestricted Net Assets / Total Assets
Definition: Shows the ratio between unrestricted net assets and total assets.
Analysis: Shows how much of your assets are financed with unrestricted net assets. A higher net asset ratio generally means that a company has been conservative in its use of debt to finance its growth and has primarily financed its growth with unrestricted capital and/or unrestricted earnings.
Total Liabilities/Total Assets
Formula: Total Liabilities /Total Assets
Definition: Shows the ratio between total liabilities and total assets.
Analysis: Comparison of how much of your assets are financed through debt. A higher liabilities to assets ratio generally means that a company has been aggressive in financing its growth with debt. Too much debt can put your business at risk... but too little debt may mean you are not realizing the full potential of your business and may actually hurt your overall profitability.
Leverage Ratio (currently called Total Debt to Equity)
Formula: Total Liabilities / Total Equity
Definition: Shows the ratio between capital invested by the owners and the funds provided by lenders and other creditors.
Analysis: Comparison of how much of the business was financed through debt and how much was financed through equity. A higher debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. Too much debt can put your business at risk... but too little debt may mean you are not realizing the full potential of your business and may actually hurt your overall profitability.
Liquidity Ratios
Current Ratio
Formula: Current Assets / Current Liabilities
Definition: Measures ability to meet short-term obligations.
Analysis: 1.0 ratio means the company has $1.00 in current assets to cover each $1.00 in current liabilities.
Quick Ratio
Formula: Cash and Equivalents / Current Liabilities
Definition: Measures ability to meet short-term obligations.
Analysis: 1.0 ratio means the company has $1.00 in cash and equivalents to cover each $1.00 in current liabilities.
Accounts Payable Days
Formula: Accounts Payable/(Operating Income/90)
Definition: Shows how many days operating bills are in the system before they are paid.
Analysis: The more payable days, the more cash accumulates. However, too high of a number may indicate a poor cash position and also possible forfeiture of cash discounts.
Accounts Receivable Days
Formula: Accounts Receivable/(Operating Income/90)
Definition: Shows how many days invoices are in the system before they are collected.
Analysis: The more receivable days, the more cash deteriorates. However, too small a number may mean that revenues are diminished by too restrictive a screening or collection policy.
Days Operating Cash
Formula: Cash and Equivalents/[(Operating Expenses -Depr, Amort & Other non-cash expenses)/90
Definition: Shows how many days of operating expenses can be covered from cash on hand.
Analysis: The fewer days cash on hand the more likely the organization may be challenged to meet its current operating expenses.
Performance Ratios
Profitability Ratio
Formula: (Operating Income - Operating Expenses)/Operating Income
Definition: Indicates if organization has profitable operations
Analysis: A positive result indicates the organization is able to internally generate retained earnings to build its capital base.
Self-Sufficiency Ratio
Formula: (Operating Income - Grants & Contributions)/Operating Expenses
Definition: Indicates what level of operating expenses are covered by earned income
Analysis: A higher self-sufficiency ratio indicate an organization is less dependent on fundraising to cover operating expenses.
Vacancies/GPR
Formula: Vacancy/Gross Potential Rent
Definition: Shows the percentage of vacancy dollars to Gross Potential Rent revenue.
Analysis: High percentage may indicate trouble for a project. Compare to peers to help determine common or specific cause.
Bad Debt/GPR
Formula: Bad Debt Expense/Gross Potential Rent
Definition: Shows the percentage of bad debts to Gross Potential Rent revenue.
Analysis: High percentage may indicate trouble for a project. Compare to peers to help determine common or specific cause.
Operating Expenses/GPR
Formula: Operating Expenses/Gross Potential Rent
Definition: Shows the percentage of operating expenses to Gross Potential Rent revenue.
Analysis: High percentage may indicate a trouble for a project. Compare to peers to help determine common or specific cause.
