FINANCIAL RATIO ANALYSIS - Demonstrating （财务比率分析,证明）.pdf

Financial Ratio Analysis A GUIDE TO USEFUL RATIOS FOR UNDERSTANDING YOUR SOCIAL ENTERPRISE’S FINANCIAL PERFORMANCE December 2013 Ratio Analysis Acknowledgments This guide and supporting tools were developed by Julie Poznanski, Bryn Sadownik and Irene Gannitsos as part of the Demonstrating Value Initiative at Vancity Community Foundation. The guide was released in December 2010, with minor updates in December 2013. Further copies of the guide can be downloaded at . i | P a g e Ratio Analysis Contents Introduction 1 The Ratios 2 Profitability Sustainability Ratios 2 Operational Efficiency Ratios 5 Liquidity Ratios 7 Leverage Ratios 9 Other Ratios 10 ii | P a g e Ratio Analysis Introduction A sustainable business and mission requires effective planning and financial management. Ratio analysis is a useful management tool that will improve your understanding of financial results and trends over time, and provide key indicators of organizational performance. Managers will use ratio analysis to pinpoint strengths and weaknesses from which strategies and initiatives can be formed. Funders may use ratio analysis to measure your results against other organizations or make judgments concerning management effectiveness and mission impact For ratios to be useful and meaningful, they must be: o Calculated using reliable, accurate financial information (does your financial information reflect your true cost picture?) o Calculated consistently from period to period o Used in comparison to internal benchmarks and goals o Used in comparison to other companies in your industry o Viewed both at a single