NET OPERATING REVENUES RATIO NET OPERATING INCOME TOTAL REVENUE FORECAST

TREND

2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021

No change with GASB 68, except for 2014-2105, cumulative change was not included.

KSU -0.62 -5.77 -8.19 -5.26 -3.94 -2.22 -0.61 0.43 1.26

The Net Operating Revenues Ratio is a measure of operating results and answers the question, "Do operating results indicate that the University is living within available resources?" Operating results either increase or decrease net assets and, thereby, impact the other three core ratios: Primary Reserve, Return on Net Assets, and Viability.

A target of 2% - 4% is a goal overan extended tiem period, although fluctuations from year to year are likely. A key consideration for institutions establishing a benchmark for this ratio would be the anticipated growth in total expenses. A deficit in a single year is not necessarily a problem, but deficits over a number of years indicate trouble and suggest the need for restructuring.