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Monitoring Client Dropouts. Formula for Computing Dropout Rate. AC begin + NC – AC end AC begin + NC. Dropout Rate =. Computes dropout rates during a given period, ex. during a quarter, or during the year. AC begin = Active clients/borrowers at the beginning of the period
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Monitoring Client Dropouts Formula for Computing Dropout Rate
ACbegin + NC – ACend ACbegin+NC Dropout Rate = Computes dropout rates during a given period, ex. during a quarter, or during the year. ACbegin = Active clients/borrowers at the beginning of the period NC = new clients, or new loans disbursed, during the period ACend= Active clients at the end of the period ACend must always be equal to or less than (ACbegin + NC). If ACend is equal to (ACbegin + NC), there were no dropouts during the period. If ACend is less than (ACbegin + NC), there were dropouts during the period.
ACbeginning of quarter + NCduring the quarter – ACend of quarter ACbeginning of quarter + NCduring the quarter ACDec2002 + (NCJan 2003 + NCFeb 2003 + NCMar 2003) - ACMar 2003 ACDec 2002 + (NCJan 2003 + NCFeb 2003 + NCMar 2003) Quarterly Dropout Rate Illustration: Compute for dropout rate for the quarter January to March 2003: ACbeginning of quarter = ACas of January 1, 2003 = ACas of December 31, 2002 NCduring the quarter = NCin Jan 2003 + NCin Feb 2003 + NCin Mar 2003 ACend of quarter = ACas of March 31, 2003
ACbeginning of the year + NCduring the year – ACend of the year ACbeginning of the year +NCduring the year ACDec2001 + (NCJan2002 + NCFeb2002 + NCMar2002 +… + NCDec2002) – ACDec2002 ACDec 2001 + (NCJan2002 + NCFeb2002 + NCMar2002 +… + NCDec2002) Annual Dropout Rate Illustration: Compute for dropout rate for 2002: ACbeginning of the year = ACas of January 1, 2002 = ACas of December 31, 2001 NCduring the year = NCin Jan2002 + NCin Feb2002 + NCin Mar2002 + ….+ NCin Dec2002 ACend of the year = ACas of December 31, 2002
ACbegin= 430 NC = 2,055 (Sum of NC from Jan to Dec) ACend = 1,748 Annual dropout rate = 430 + 2,055 – 1, 748 = 737 = 30% 430 + 2,055 2,485 Example: Annual Dropout RateJanuary 1-December 31
Example: Compute for the dropout rate for the quarter October to December: ACbegin= ACas of Sep 30 =1,220 NC = NCOct-Dec = 178 + 344 + 293 = 815 ACend = ACas of Dec 31 = 1,748 Annual dropout rate = 1,220 + 815 – 1, 748 = 287 = 14% 1,220 + 815 2,035 Example: Quarterly Dropout Rate
Exercise 1 • Given the above data, answer the following: • Compute for the annual dropout rate for the year 2002, i.e., from January 1 to December 31, 2002. • How many clients exited during the quarter April to June? What was the dropout rate for the quarter?
Exercise 2 • The branch where you are the MFU Supervisor opened its microfinance operations on May 1, 2002. You want to compute for the dropout rate from the start of operations to May 31, 2003. • What was the total number of new clients who had been serviced by the branch from May 1, 2002 to May 31, 2003? • How many clients had exited the program from the start of operations to May 31, 2003? • What was the dropout rate from the start of operations to May 31, 2003?
Quarterly Dropout Rate for April to June: ACbegin = ACas of Mar 31 = 243 NC, Apr-Jun = 14 + 44 + 13 = 71 ACend = ACas of Jun 30 =285 ACbegin + NC – ACend = 243 + 71 – 285 = 29 = 9% ACbegin + NC 243 + 71 314 Solution to Exercise 1 Annual Dropout Rate, January 1 to December 31: ACbegin = 119 NC, Jan-Dec = 524 ACend = 505 ACbegin + NC – ACend = 119 + 524 – 505 = 138 = 21% ACbegin + NC 119 + 524 643
ACbegin = Active Clients as May 1, 2002 = 0 • NC (Sum of NC from May 2002 to May 2003) = 170 • ACend = 128 • ACbegin + NC - ACend = 0 + 170 – 128 = 42 = 25% • ACbegin + NC 0 + 170 170 • The bank serviced a total of 170 new clients from May 1, 2002 to May 31, 2003. • 42 clients had exited the program from the start of operations to May 31, 2003. • The dropout rate from the start of operations to May 31, 2003 was 25% Solution to Exercise 2