Article Archives >> Behind the Numbers >> May 16-31, 2005
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BEHIND the NUMBERS
Nonprofit Performance Measurement:
The Use and Misuse of Ratio Analysis
By Eric Fraint, President
Your Part-Time Controller, LLC
Excerpt
Funders, donors, executive directors, board members, and other senior
organization staff members all have an interest in knowing how well
the nonprofit organizations they work with are performing. A powerful
tool for measuring financial performance is ratio analysis. Ratio
analysis, when used correctly, provides insight to an organization’s
performance over time and as compared to other similar organizations.
However, ratios can be misused and misunderstood.
Article Archives >> Behind the Numbers >> May 16-31, 2005
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