Metrics of FINANCIAL Performance

1.Primary Reserve Ratio= Expendable Net Assets/Total Expenses

The Primary ReserveRatio measures the financial strength of the institution by indicating how long the institution could function using its expendable reserves to cover operations should additional net assets not be available.

2.Return on Net Assets Ratio= Change in Net Assets/Total Beginning Net Assets

The Return on Net AssetsRatio measures total economic return and indicates whether the institution is financially better off than in previous years. A decline may be appropriate if it represents an institutional strategy to fulfill its mission. An improving trend indicates increasing net assets and additional reserves which provides financial flexibility.

3.Net Operating Revenues Ratio= Income before Other Items/Adjusted Net Operating Revenues

The Net Operating RevenuesRatio indicates whether the institution’s operating activities resulted in a net deficit or surplus for the year. The ratio measures whether available resources are sufficient to fund operating activities.

4.Viability Ratio= Expendable Net Assets/Total Debt

The ViabilityRatio measures the ability of the institution to cover its debt as of the balance sheet date, should the institution need to settle its obligations.

5.Debt Burden Ratio= Debt Service/Total Expenses

The Debt BurdenRatio measures the financial strength of the institution by indicating how long the institution could function using its expendable reserves to cover operations should additional net assets not be available.

6.Bond Ratings:The Bond Ratings indicate the institution's debt is considered high-grade, high-credit quality.