Detailed Financial Ratio Analysis Report for Business Performance

This report presents a detailed ratio analysis, covering several key financial indicators. It includes calculations and interpretations of the Defensive Interval Ratio, Liquidity Funds Indicator (Liquid Ratio), Current Ratio, Program Service Expense Ratio, and Fund Raising Efficiency. The analysis provides insights into the organization's liquidity, ability to meet short-term obligations, and efficiency in program spending and fundraising. The report offers a comparative analysis, examining the financial performance across different periods. The interpretations highlight the significance of each ratio in evaluating the company's financial health and operational effectiveness. This report is useful for understanding the financial performance of a company.

RATIO ANALYSIS

TABLE OF CONTENTS
Ratio Analysis..................................................................................................................................1
Defensive Interval Ratio.............................................................................................................1
Liquidity Funds Indicator or Liquid Ratio..................................................................................1
Current Ratio...............................................................................................................................2
Program Service Expense Ratio..................................................................................................2
Fund Raising Efficiency..............................................................................................................2

Ratio Analysis
Defensive Interval Ratio
Defensive Interval Ratio=Quick assets/Daily Cash Expenses
Particulars 2017 2016
Where Quick asset=Cash + Marketable Securities+
Receivables 3580296 3325534
Daily Cash Expenses=Total Expenses/365 85071 83127
Ratio 42.09 40.01
Interpretation-:
It is Helpful in evaluation of company's health and also provides that in how many days
an organisation meets there expenses without having any financial difficulty. Higher Defensive
ratio provides means that there is good amount of liquidity in organisation.
Liquidity Funds Indicator or Liquid Ratio
Liquidity Ratio=Quick asset/Current Liability
Whereas Quick Asset= Current Asset-Inventory-Prepaid Expenses
Particulars 2017 2016
Quick Asset= 3580296 33,25,534
Current Liabilities= 2152701 2481235
Liquidity Ratio 1.66 1.34
Interpretation-:
1

Higher Liquidity ratio indicates that organisation is holding too much or liquid assets
with them and it is better to have increased liquid ratio as that indicates that company is having
enough liquid asset for paying there short-term obligations.
Current Ratio
Current Ratio= Current Assets/Current Liabilities
Particulars 2017 2016
Current Assets 4379957 3917411
Current Liabilities 2152701 2481235
Ratio 2.03 1.58
Interpretation-:
The Higher Current ratio indicates that company is having good amount of current asset
with it to pay off there immediate short-term or current liabilities of company.
Program Service Expense Ratio
Program Service Expenses=Total Expenses incurred/Expenses incurred on programs and
services.
Particulars 2017 2016
Total Expenses Incurred 31051013 30341363
Expenses incurred on Program and Services 7959547 7865915
Ratio 3.90 3.86
Interpretation-:
2

This ratio is calculated for Non-Profit Organisation to calculate how much expenses are
incurred for a specific event or program. Program Service Expense ratio are mostly used for
comparing two organisations of same field and they are doing same event.
Fund Raising Efficiency
Fund Raising Efficiency=Unrestricted Contributions/Unrestricted Fund raising Expenses
Particulars 2017 2016
Unrestricted Contributions 853094 545999
Unrestricted Fund Raising Expenses 214105.59 139985.75
Ratio 3.98 3.90
As they are not provided so they are taken on pro-rate basis
Particulars 2017 2016
Total Donations Received 31714453 30680135
Unrestricted Donations 853094 545999
Total Expenses Incurred for fund raising 7959547 7865915
So Expenses Incurred for Unrestricted Donations 214105.59 139985.75
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