Financial Health Check

Assess your financial health here with our online ratio calculator.

Input screen 1 - Assets

Use whole dollar figures - no cents, commas, symbols or spaces

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Bank accounts includes the total balance of all bank accounts including term deposits, cash management accounts, cheque accounts
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Other current assets includes debtors (money owed to you), prepayments, petty cash
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Fixed assets such as property, plant and equipment that cannot readily be converted into cash, deduct accumulated depreciation which comes from the balance sheet
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Total assets should match the same account on your balance sheet
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Input screen 2 - Liabilities

Use whole dollar figures - no cents, commas, symbols or spaces

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Money you owe to creditors is the total value of unpaid invoices
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Staff entitlements is the balance of amounts owed to employees on this date (if you were to close on this date, what would you owe the staff?)
$
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Grants received in advance are funds already received from funders but not yet applied to a program. If you were to close on this date, you would be expected to refund these grants.
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Other current liabilities includes GST, FBT, PAYG
$
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Non-current liabilities include loans, long service leave for staff with less than 5 years service.
$
$
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Input screen 3 - Additional information

Use whole dollar figures - no cents, commas, symbols or spaces

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Annual total income (from the income and expenditure statement over the past 12 months). You may need to go back to the previous financial year to add the total for 12 months.
$
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Annual expenditure - your total annual expenditure
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Annual total staff costs includes all wages and salaries, superannuation, workers compensation
$
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Your results

Indicator Your Ratio 'Average' Your score
(out of 10)
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Reserves to expenditure - ratio gives an indication of large a financial 'buffer' an organisation has. The larger the buffer, the better chance of weathering unexpected financial stress. A ratio of greater than 18% is considered good.
Reserves to expenditure %ratio1% 15%-18% %score1%
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Working capital - ratio gives an indication of how well you are placed to pay your debts as they fall due. It is a measure of how much you have against how much you owe i.e. current assets divided by current liabilities. A ratio of more than 2 is good, 1 to 2 is OK and less than 1 is not so good.
Working capital %ratio2% 1.0 - 2.0 %score2%
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Cash reserves - measures the number of weeks an organisation could operate if all income was ceased immediately. It is calculated as cash (less Grants in Advance) divided by average weekly expenditure. Cash reserves of greater than 10 weeks is considered healthy.
Cash reserves (weeks) %ratio3% 7 - 10 %score3%
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Profit margin - measures your organisation's surplus (or deficit) as a percentage of total income. Non-profits should aim for a small margin to build up reserves in order to cover unexpected downturns which invariably occur.
Profit margin %ratio4%
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Staff costs to income - this statistic measures the percentage of total income taken up in staff costs. Non-profit organisations usually have a higher proportion of income allocated to staff costs compared to other industry sectors. This figure will be affected by the type of service your organisation offers and the level of external consultants engaged to deliver programs. A ratio of 50-70% is not uncommon in the non-profit sector.
Staff costs : income %ratio5%