FORMULA
FINANCIAL INDICATOR RATIO
PRIMARY EXPENDABLE NET ASSETS
RESERVE TOTAL EXPENSES
| TREND | FORECAST | ||||||||
| 2012-2013 | 2013-2014 | 2014-2015 | 2015-2016 | 2016-2017 | 2017-2018 | 2018-2019 | 2019-2020 | 2020-2021 | |
|---|---|---|---|---|---|---|---|---|---|
| KSU - w/ Pension | 0.43 | 0.38 | -0.99 | -1.13 | -1.06 | -1.09 | -1.07 | -1.00 | -0.95 |
| KSU - w/o Pension | 0.43 | 0.38 | 0.39 | 0.42 | 0.38 | 0.34 | 0.33 | 0.37 | 0.43 |
The Primary Reserve Ratio provides a snapshot of financial strength and flexibility by indicating how long the institution could function using its expendable reserves (both unrestricted and restricted, excluding net assets restricted for capital investments) without relying on additional net assets generated by operations.
.40 (5 months) -- Below .15 (15% of a year, or 2 months) indicates possible short-term borrowing and struggling to find reserves for reinvestments; .40 (40% of a year, or 5 months) indicates sufficient cash for short-term needs, facilities maintenance, and contingency reserves; 1.0 and greater indicates reserves available to cover at least one year of expenses with no additional revenue.