The application of financial ratios in analysing nonprofit organisations
Kent, Ros (1993) The application of financial ratios in analysing nonprofit organisations. [Working Paper]
Historically ratios have been used to assess the financial standing of profit organisations. It would be expected the role which such ratios play in analysing nonprofit organisations would be considerably different due to the lack of profit motive. Many traditional ratios are based on profitability as a benchmark. The nonprofit sector plays an important role in society yet to date there has been no research carried out on financial statement analysis for nonprofit organisations in Australia.
This paper examines ratios of a group of nonprofit organisations and assesses the applicability of the traditional profit-based ratios to nonprofit organisations. Financial statements of a sample of charities registered in Queensland are analysed. The traditional profitability, liquidity and financial stability ratios are analysed and calculated wherever practicable and compared to the typical benchmarks used in profit analysis.
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|Item Type:||Working Paper|
|Keywords:||Finanacial Ratios, Nonprofit Organisations|
|Subjects:||Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000)|
|Divisions:||Current > QUT Faculties and Divisions > QUT Business School|
|Copyright Owner:||Copyright 1993 Queensland University of Technology|
|Deposited On:||22 Aug 2012 10:51|
|Last Modified:||22 Aug 2012 16:02|
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