1 / 14

Keeping score Andres Ramirez Ph.D. aramirez@bryant

Keeping score Andres Ramirez Ph.D. aramirez@bryant.edu. or. Agenda. Information availability in Latin America Expected liquidity as a goal Liquidity ratios Benchmarking Expected liquidity lambda. Information Availability. Ethics Who owns the information Why it is unavoidable

tim
Download Presentation

Keeping score Andres Ramirez Ph.D. aramirez@bryant

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Keeping scoreAndres Ramirez Ph.D.aramirez@bryant.edu or

  2. Agenda • Information availability in Latin America • Expected liquidity as a goal • Liquidity ratios • Benchmarking • Expected liquidity lambda

  3. Information Availability • Ethics • Who owns the information • Why it is unavoidable • Global trends • Transparency • Governance • Information in other countries • So… what does the future bring?

  4. Why is it good to share your information? • Moral obligation • To attract and keep donors • To align management with your mission • To attract and keep key employees • To signal quality to bankers, lenders and other stakeholders • For regulatory purposes

  5. Expected liquidity • It should be the financial goal of the NP • What it is • To have the amount of money you need when you need it at a reasonable cost. • Why not other goals • How to calculate it

  6. Issues regarding calculations • Networking is not for marketing only!!! Do your homework! • Failure rates • Leverage ratios • Lines of credit available • Seasonality • Cycles

  7. We plow the dirt with the oxen we have • Benchmarking • What is it, how to do it • If we can’t find comparable firms in our countries we have to look elsewhere • USA by “industry” and by “size” • Charity Navigator • Guide star • National Center Charitable Statistics

  8. Liquidity planning • Identify your benchmark, industry and comparable non profits • Calculate financial ratios • Cross sectional • Time series • Forecast values

  9. Liquidity ratios to calculate

  10. Liquidity ratios to calculate • Expected Liquidity (EL) • Liquidity Lambda (LL) • Cash flow ≠ Income • For std dev estimates the more information the better… consider monthly or quarterly estimates

  11. Example • Looking for information • NTEE classification • Small NPO in Rhode Island, USA • Environmental small charity

  12. Basic Information for sample Non Profit

  13. Calculations for “Save the Whales” Current assets / Current liabilities Cash / Total Expenses Total Liabilities / Total Assets

  14. Expected Liquidity Assumptions Cash + Short Term Investments + Credit Line Available – Short Term Loans EL + Forecasted Cash Flow / Std Dev Cash Flow

More Related