Key Financial Ratios The key financial ratios in this tool are high-level ratios only, drawing on the Balance Sheet and Profit and Loss Statement. The ratios are organisation’s calculated from your financial records at the date they were generated. Significant changes in your circumstances since that date will not be reflected in organisation’s the key ratios and therefore need to be considered when analysing and responding to the results. The results also need to be viewed in the context of your overall organisation’s circumstances, including its strategy and financial history. Trends in the ratios across time can be important; however, the impact of changes under the NDIS might result in your pre-NDIS history being less relevant. As such, it is only an indicator of future performance. Further analysis can give a more complete understanding of your financial position. organisation’s The comments about preferred results are for guidance only. How to complete the analysis of key financial ratios You will need your latest audited Balance Sheet and Profit and Loss Statement. This is important because an audited Balance Sheet will account for unexpended grants. If you use a Balance Sheet that is yet to be adjusted for unexpended grants, the results are likely to overstate your financial position. In addition, the Profit and Loss Statement needs to be for the most recently completed financial year. If you use a Profit and Loss Statement for a part financial year, the Months of Spending result will not be correct. to calculate your ratios: Here’s how organisation’s Enter the relevant items from the Balance Sheet and Profit and Loss Statement in this form to calculate the ratios. Completing the ratios online will allow automatic calculation of figures. Share the results with your board and your management team. They include vital information about the financial sustainability of your organisation. If you need help in understanding the ratios, discuss the results with a staff or board member with financial expertise, or with your accountant organisation’s or auditor. Revenue Concentration Disability Revenue Concentration Ratio Ratio is equal to:
Key Financial Ratios The key financial ratios in this tool are high-level ratios only, drawing on the organisation’s Balance Sheet and Profit and Loss Statement. The ratios are calculated from your financial records at the date they were generated. Significant changes in your organisation’s circumstances since that date will not be reflected in the key ratios and therefore need to be considered when analysing and responding to the results. The results also need to be viewed in the context of your organisation’s overall circumstances, including its strategy and financial history. Trends in the ratios across time can be important; however, the impact of changes under the NDIS might result in your pre-NDIS history being less relevant. As such, it is only an indicator of future performance. Further analysis can give a more complete understanding of your organisation’s financial position. The comments about preferred results are for guidance only. How to complete the analysis of key financial ratios You will need your latest audited Balance Sheet and Profit and Loss Statement. This is important because an audited Balance Sheet will account for unexpended grants. If you use a Balance Sheet that is yet to be adjusted for unexpended grants, the results are likely to overstate your financial position. In addition, the Profit and Loss Statement needs to be for the most recently completed financial year. If you use a Profit and Loss Statement for a part financial year, the Months of Spending result will not be correct. Here’s how to calculate your organisation’s ratios: Enter the relevant items from the Balance Sheet and Profit and Loss Statement in this form to calculate the ratios. Completing the ratios online will allow automatic calculation of figures. Share the results with your board and your management team. They include vital information about the financial sustainability of your organisation. If you need help in understanding the ratios, discuss the results with a staff or board member with financial expertise, or with your organisation’s accountant or auditor. Revenue Concentration Disability Revenue Concentration Ratio Ratio is equal to: