Below you will find 18 performance measures that use information from the basic financial statements of the City of Smithville (also referred to as “The City”) as of December 31, 2011. These measures are classified by those that address financial position, financial performance, and financial capability.
FINANCIAL POSITION INDICATORS
Financial position can be calculated using unrestricted net assets, general fund budgetary fund balance, capital asset condition, pension plan funding, debt to assets, current ratio, and quick ratio. I will analyze all of these financial indicators further for the City of Smithville with the exception of pension plan funding due to the lack of information necessary to reproduce this calculation.
Unrestricted Net Assets
Unrestricted net assets reflect the aggregate amount by which revenues exceed expenses. Generally speaking, this number allows someone to quickly gain an understanding on whether the City has resources available to cover obligations in the future. For the City of Smithville in particular, we see that unrestricted net assets are equal to 6.7% of total revenue which is very low on the Crawford and Associates spectrum.
General Fund Budgetary Fund Balance
For the City of Smithville, we can see that at 11.2% they are above average on the Crawford and Associates spectrum which tells us that most of the general fund’s budgetary basis is still available.
Capital Asset Condition
City of Smithville’s capital asset condition is 25% which tells us that most of their capital equipment is nearing replacement which will result in large expenditures in the near future.
Debt To Assets
The City’s debt to assets ratio is 10.3% which is very good and tells us that the majority of the City’s assets have not been funded by debt.
The current ratio for the City of Smithville is 3.1 which exceeds the Crawford and Associates spectrum and tells us that the...