Primary Reserve Ratio = (Expendable net position)/(Total expenses)
Key Question: Is there sufficient short-term reserve to quickly satisfy obligations?
Viability Ratio = (Expendable net position)/(Long-term debt obligations)
Key Question: Is there sufficient expendable net position to cover long-term debt?
Return on Net Position Ratio = (Change in net position)/(Net position at beginning of fiscal year)
Key Question: Is the institution achieving positive economic return on its invested resources?
Net Operating Revenues Ratio = (Net income (excl. capital revenues))/(Total non-capital revenues)
Key Question: Is the institution operating within its available resources?
Composite Financial Index Ratio = Weighted avg. of 4 other ratios
Key Question: What is the overall financial health of institution through aggregating 4 other ratios?