Impact 100 - Finance 101 for Non-Profits Deck - Page 26

Financial Ratios

• Financial Ratios are tools for measuring an organization ’ s financial condition

Used by :
• Banks ( loan covenants )
• Grantors ( such as Impact 100 )
• Board of Directors or management to measure and monitor performance
Most useful :
• Calculated using accurate information
• Calculated consistently
• Used to compare to goals or other nonprofit organizations
• Viewed as a single point in time or over time ( financial trends )