Asked by: Rania Dziadikpersonal finance credit cards
What is a good current ratio for a nonprofit?
Last Updated: 10th March, 2020
Click to see full answer.
In this regard, what is a good debt to equity ratio for nonprofits?
The recommended range of the ratio is between 1.25X and 2.00X. However, the 'right' ratio is organization-specific and varies by an organization's debt policies.
Furthermore, what is a good current ratio for a bank? The company has a current ratio of 2.0, which would be considered a good ratio value in most industries. While the value of acceptable current ratios varies from industry, a good ratio would often be between 1.5 and 2.
Also know, what is a good expense ratio for a charity?
The average for the list is 86%, meaning that the typical charity was able to bank 14% of donations for the future. This ratio is highly sensitive to investment results and for many charities varies wildly from year to year. For the other two ratios, all other things being equal, the higher the ratio the better.
What is the industry average for current ratio?
Here's a breakdown of average current ratios for five common industries. The construction industry has an average current ratio of 0.97. This industry includes new work, tenant improvement work, highways or utility systems, maintenance, and repairs. The manufacturing industry has an average current ratio of 2.14.