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Financial Analyzer » Quick Look: Liquid Funds Indicator

Quick Look: Liquid Funds Indicator
for Reporting Public Charities in CLP (Latest Returns)

(Total Net Assets - Restricted Net Assets - Fixed Assets) / Average Monthly Expenses
The liquid funds indicator is similar to the defensive interval in its use but is more conservative in removing assets with restrictions on them from the calculation. It also determines the number of months of expenses that can be covered by existing assets.

A note on IRS Form 990 financial ratios:  Although useful and informative as indicators, ratios are only one type of measure of the financial health and operations of a nonprofit. Financial ratios cannot tell you the full story of nonprofit's operations and impact. Click here to learn more.
Ratios are calculated as the ratio of state totals of the numerator and denominator for each ratio — not as medians or average of each organization.