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Glossary

Working Capital Ratio:

Determines how long a charity could sustain its level of spending using its net available assets, or working capital, as reported on its most recently filed Form 990. We include in a charity's working capital unrestricted and temporarily restricted net assets, and exclude permanently restricted net assets. Dividing these net available assets in the most recent year by a charity's average total expenses, yields the working capital ratio. We calculate the charity's average total expenses over its three most recent fiscal years.

Scoring Rubric for Treatment and Prevention Services Charities

Score: 10 7.5 5 2.5 0
Working Capital Ratio (years): >1.0000 0.5000 - 1.0000 0.2500 - 0.5000 0.0000 - 0.2500 < 0.0000
Working Capital Ratio (years): Score:
>1.0000 10
0.5000 - 1.0000 7.5
0.2500 - 0.5000 5
0.0000 - 0.2500 2.5
< 0.0000 0

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