Hsm 260 Analyzing Financial Statement

HSM 260

2007
CURRENT RATIO= Current Assets/Current Liabilities 104,296/139,017=0.75
LONG TERM SOLVENCY RATIO=Total Assets/Total Liabilities 573,948/171,229=3.35
CONTRIBUTION RATIO=Largest Revenue/Total Revenue 547,896/1,095,792=0.5
PROGRAM/EXPENSE RATIO=Total Program Expense/Total Expense 614,105/1,069,590=0.57
GENERAL and MANAGEMENT & EXPENSE RATIO= Total General and Management/Total Expense 351,000/1,069,590=0.33
REVENUE/EXPENSE RATIO=Total Revenue/Total Expense 1,095,792/1,069,590=1.02
2008
CURRENT RATIO= Current Assets/Current Liabilities 82,058/93,975= 0.87
LONG TERM SOLVENCY RATIO=Total Assets/Total Liabilities 555,610/166,004=3.34
CONTRIBUTION RATIO=Largest Revenue/Total Revenue 912,560/1,525,346=0.6
PROGRAM/EXPENSE RATIO=Total Program Expense/Total Expense 983,541/1,464,541=0.67
GENERAL and MANAGEMENT & EXPENSE RATIO= Total General and Management/Total Expense 351,000/1,069,590=0.33
REVENUE/EXPENSE RATIO=Total Revenue/Total Expense 1,525,346/1,464,541=1.04

All ratios are extremely significant to a human service organization. The ratios alleviate the willpower of the organization in manufacturing the capital or losing funds.   The intentions for current ratio are to evaluate the human service organization’s assets and liabilities. The objective of the long-term solvency ratio is to review the resources of a human service organization of their earnings as they may be anticipated. The intentions for the contribution ratio are to evaluate the human service organization confidence within the organization’s largest revenue resources. The objective of the programs/expense ratio is utilized by contributors and supporters to formulate the assessment about any funds and/or resources that have been offered or permitted. The principle for general and management/expense ratio is to establish the quantity of a human service organization’s outflows that will lead towards the direction of the organization’s goals and objectives. The intentions of...