The application of financial ratios in analysing nonprofit organisations

Kent, Ros (1993) The application of financial ratios in analysing nonprofit organisations. Queensland University of Technology, Brisbane. [Working Paper]

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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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ID Code: 53244
Item Type: Working Paper
Refereed: No
Keywords: Finanacial Ratios, Nonprofit Organisations
ISBN: 0868568198
ISSN: 1037-1516
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000)
Divisions: Current > Research Centres > Australian Centre for Philanthropy and Nonprofit Studies
Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 1993 Queensland University of Technology
Deposited On: 22 Aug 2012 00:51
Last Modified: 24 Sep 2015 16:32

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