FINANCIAL INDICATOR RATIO FORMULA
COMPOSITE FINANCIAL INDEX (PRIMARY RESERVE RATIO STRENGTH FACTOR X .35) + (VIABILITY RATIO STRENGTH FACTOR X .35) + (RETURN ON NET ASSETS RATIO STRENGTH FACTOR X .20) + (NET OPERATING REVENUES RATIO STRENGTH FACTOR X .10)
FORECAST
TREND 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
KSU - w/ Pension 2012-2013 2013-2014 2014-2015 2015-2016 -17.49 -20.04 -22.07 -26.33 -36.52
KSU - w/o Pension 4.16 3.39 -12.25 -16.04 4.52 5.02 6.52 10.12 17.54
KSU
2012-2013 KSU - w/ Pension 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
4.16 KSU - w/ Pension 3.39 -12.25 -16.04 -17.49 -20.04 -22.07 -26.33 -36.52
4.16 KSU - w/o Pension 3.39 3.49 4.08 4.52 5.02 6.52 10.12 17.54
The Composite Financial Index (CFI) creates one overall financial measurement of the institution's health based on the four core ratios: primary reserve, net operating revenues, return on net assets and viability. By blending these four key measures of financial health into a single number, a more balanced view of the state of the institution's finances is possible because a weakness in one measure may be offset by the strength of another measure.
1.0 - indicates very little financial health
3.0 - is considered the low benchmark and represents a stronger financial position
10.0 - is the top of the range of the scale
These scores do not have absolute precision. They are indicators of financial health that can be indicators of overall institutional well-being, when combined with nonfinancial indicators. A high CFI is not necessarily indicative of a successful institution, although a low CFI generally is indicative of additional challenges.