Ratios Ratios Ratios

Transcription

1 Ratios Ratios Ratios

2 Gracias!

3 Presentation Professional Highlights 14 years Owner of a Public Accounting practice in San Juan, Puerto Rico AICPA Peer Review Program Participation Reviewed Firm Reviewer Member of the Peer Review Committees 2008 Recognition Puerto Rico Society of CPA Distinguished Services 2013 Recognition Caribbean Business 40 under 40 Involvement in the Cooperative Movement, specially Housing Cooperative Volunteer Work Member of various Board of Directors of Non Profit Entities (NPO) Personal: Music / Sports

4 Ratios Definition: is a relative magnitude of two selected numerical values taken from an entity s financial statements. Often used in accounting to try to evaluate the overall financial condition of an organization.

5 Ratios Concepts Relationship Comparison / Benchmarking Trend Results Expectations Performance Analysis

6 Information needed Annual financial statements (audited) Balance Sheet Income Statement Cash Flows Notes to financial statements Annual Operating Budget

7 Reference HUD Rev-2 Financial Operations and Accounting Procedures for Insured Multifamily Projects. (05/1992)

8 Ratios Financial Ratios Liquidity Profitability Activity Operational Ratios (non-financial data) Maintenance Orders per year Time per service order

9 Exhibits Exhibit A - Benchmarking Exhibit B Trends / Multi-Year

10 Type of Ratio Description CEA CEI CCU CTC CRH CLR Comments Liquidity Net Available Funds $ 491, $ 470, $ 645, $ 1,060, $ 397, $ 692, Liquidity Mortage payment coverage ratio Liquidity Current ratio Liquidity Acid Test Ratio Ratios Profitability Profit Margin on revenue 51.49% 42.40% 60.75% 19.70% 24.23% 6.19% Profitability Return on Equity 23.61% 22.66% 18.39% 6.67% 10.78% 1.94% Activity Average Collection period (days) High equals problem in the collection area Activity Percentage of uncollected rent 5.41% 9.39% 0.96% 2.67% 0.55% 0.77% This ratio should not exceed 7% Activity Level of accounts receivable 23.10% 46.65% 16.24% 49.13% 20.15% 16.03% Generally, receivables should not exceed 10% of monthly rent potential; watch out for lone rangers Activity Laundry income per unit $ $ $ $ $ $

11 Data Description CEA CEI CCU CTC CRH CLR Current Assets w/ Restricted deposits $ 938, $ 844, $ 1,031, $ 1,124, $ 441, $ 777, Current Liabilities $ 447, $ 374, $ 385, $ 63, $ 43, $ 84, Total Quick Assets $ 191, $ 186, $ 249, $ 78, $ 136, $ 358, Monthy mortgage payment $ 25, $ - $ - $ - $ - $ - Net profit before depreciation $ 498, $ 714, $ 849, $ 239, $ 181, $ 68, Rental Revenue $ 968, $ 1,686, $ 1,399, $ 1,215, $ 749, $ 1,098, Equity $ 2,112, $ 3,154, $ 4,622, $ 3,589, $ 1,685, $ 3,514, Total Rental Revenue per year $ 968, $ 1,686, $ 1,399, $ 1,215, $ 749, $ 1,098, Days Accounts receivable $ 18, $ 65, $ 18, $ 49, $ 12, $ 14, Rental Revenue per Day $ 2, $ 4, $ 3, $ 3, $ 2, $ 3, Vacancy Loss $ 52, $ 149, $ 13, $ 28, $ 4, $ 8, Bad debt expense $ - $ 8, $ - $ 3, $ - $ - Rent Potential $ 968, $ 1,686, $ 1,399, $ 1,215, $ 749, $ 1,098, Laundry income $ 41, $ 46, $ 64, $ 46, $ 35, $ 82, Total apartments (units) Vacant units Depreciation $ 119, $ 271, $ 337, $ 218, $ 124, $ 241, Property and Equipment - Gross Total revenues Administrative Utilities Maintenance Insurance/Taxes Financial

12 Liquidity CEA CEI CCU CTC CRH CLR Net Available Funds $ 491, $ 470, $ 645, $ 1,060, $ 397, $ 692, Current Assets $ 938, $ 844, $ 1,031, $ 1,124, $ 441, $ 777, Current Liabilities $ 447, $ 374, $ 385, $ 63, $ 43, $ 84, Mortage payment coverage ratio 19 Net Available Funds $ 491, $ 470, $ 645, $ 1,060, $ 397, $ 692, Monthy mortgage payment $ 25, $ - $ - $ - $ - $ - Current ratio Current Assets $ 938, $ 844, $ 1,031, $ 1,124, $ 441, $ 777, Current Liabilities $ 447, $ 374, $ 385, $ 63, $ 43, $ 84, Acid Test Ratio Total Quick Assets $ 191, $ 186, $ 249, $ 78, $ 136, $ 358, Current Liabilities $ 447, $ 374, $ 385, $ 63, $ 43, $ 84,333.00

13 Profitability CEA CEI CCU CTC CRH CLR Profit Margin on revenue 51.49% 42.40% 60.75% 19.70% 24.23% 6.19% Net profit before depreciation $ 498, $ 714, $ 849, $ 239, $ 181, $ 68, Rental revenue $ 968, $ 1,686, $ 1,399, $ 1,215, $ 749, $ 1,098, Return on Equity 23.61% 22.66% 18.39% 6.67% 10.78% 1.94% Net profit before depreciation $ 498, $ 714, $ 849, $ 239, $ 181, $ 68, Equity $ 2,112, $ 3,154, $ 4,622, $ 3,589, $ 1,685, $ 3,514,055.00

14 Activity CEA CEI CCU CTC CRH CLR Average Collection period Total rental revenue per year $ 968, $ 1,686, $ 1,399, $ 1,215, $ 749, $ 1,098, Days Account receivable $ 18, $ 65, $ 18, $ 49, $ 12, $ 14, Rental Revenue per day Percentage of uncollected rent 5.41% 9.39% 0.96% 2.67% 0.55% 0.77% Vacancy Loss + Bad debt $ 52, $ 158, $ 13, $ 32, $ 4, $ 8, Rent potential $ 968, $ 1,686, $ 1,399, $ 1,215, $ 749, $ 1,098, Level of accounts receivable 23.10% 46.65% 16.24% 49.13% 20.15% 16.03% Accounts receivable balance $ 18, $ 65, $ 18, $ 49, $ 12, $ 14, Monthly rent potential $ 80, $ 140, $ 116, $ 101, $ 62, $ 91, Laundry income per unit $ $ $ $ $ $ Laundry income $ 41, $ 46, $ 64, $ 46, $ 35, $ 82, Total apartments (units)

15 Ratios - Trend within Entity Type of Ratio Description Comments Liquidity Net Available Funds $ 491, $ 452, $ 369, $ 352, $ 456, Liquidity Mortage payment coverage ratio Liquidity Current ratio Liquidity Acid Test Ratio Profitability Profit Margin on revenue 51.49% 47.37% 45.80% 43.52% 37.88% Profitability Return on Equity 23.61% 25.65% 30.02% 34.71% 34.87% Activity Average Collection period (days) High equals problem in the collection area Activity Percentage of uncollected rent 5.41% 4.96% 1.12% 1.97% 1.04% This ratio should not exceed 7% Activity Level of accounts receivable 23.10% 22.40% 16.02% 18.54% 25.31% Generally, receivables should not exceed 10% of monthly rent potential; watch out for lone rangers Activity Laundry income per unit $ $ $ $ $

16 Data Description Current Assets w/ Restricted deposits $ 938, $ 936, $ 977, $ 933, $ 1,138, Current Liabilities $ 447, $ 483, $ 608, $ 580, $ 682, Total Quick Assets $ 191, $ 240, $ 181, $ 170, $ 161, Monthy mortgage payment $ 25, $ 25, $ 26, $ 26, $ 26, Net profit before depreciation $ 498, $ 457, $ 435, $ 416, $ 339, Rental Revenue $ 968, $ 965, $ 951, $ 956, $ 897, Equity $ 2,112, $ 1,783, $ 1,451, $ 1,198, $ 975, Total Rental Revenue per year $ 968, $ 965, $ 951, $ 956, $ 897, Days Accounts receivable $ 18, $ 18, $ 12, $ 14, $ 18, Rental Revenue per Day $ 2, $ 2, $ 2, $ 2, $ 2, Vacancy Loss $ 52, $ 47, $ 10, $ 18, $ 9, Bad debt expense $ - $ - $ - $ - $ - Rent Potential $ 968, $ 965, $ 951, $ 956, $ 897, Laundry income $ 41, $ 43, $ 43, $ 47, $ 45, Total apartments (units) Vacant units Not available Not available Not available Not available Not available Depreciation $ 119, $ 122, $ 124, $ 120, $ 118, Property and Equipment - Gross $ 6,348, $ 6,337, $ 6,334, $ 6,322, $ 6,252, Total revenues $ 1,431, $ 1,278, $ 1,299, $ 1,235, $ 1,360, Administrative $ 179, $ 185, $ 175, $ 154, $ 147, Utilities $ 129, $ 121, $ 120, $ 127, $ 129, Maintenance $ 460, $ 350, $ 414, $ 363, $ 581, Insurance/Taxes $ 159, $ 159, $ 151, $ 159, $ 141, Financial $ 3, $ 4, $ 2, $ 13, $ 20,988.00

17 Liquidity Net Available Funds $ 491, $ 452, $ 369, $ 352, $ 456, Current Assets $ 938, $ 936, $ 977, $ 933, $ 1,138, Current Liabilities $ 447, $ 483, $ 608, $ 580, $ 682, Mortage payment coverage ratio Net Available Funds $ 491, $ 452, $ 369, $ 352, $ 456, Monthy mortgage payment $ 25, $ 25, $ 26, $ 26, $ 26, Current ratio Current Assets $ 938, $ 936, $ 977, $ 933, $ 1,138, Current Liabilities $ 447, $ 483, $ 608, $ 580, $ 682, Acid Test Ratio Total Quick Assets $ 191, $ 240, $ 181, $ 170, $ 161, Current Liabilities $ 447, $ 483, $ 608, $ 580, $ 682,564.00

18 Profitability Profit Margin on revenue 51.49% 47.37% 45.80% 43.52% 37.88% Net profit before depreciation $ 498, $ 457, $ 435, $ 416, $ 339, Rental revenue $ 968, $ 965, $ 951, $ 956, $ 897, Return on Equity 23.61% 25.65% 30.02% 34.71% 34.87% Net profit before depreciation $ 498, $ 457, $ 435, $ 416, $ 339, Equity $ 2,112, $ 1,783, $ 1,451, $ 1,198, $ 975,062.00

19 Activity Average Collection period Total rental revenue per year $ 968, $ 965, $ 951, $ 956, $ 897, Days Account receivable $ 18, $ 18, $ 12, $ 14, $ 18, Rental Revenue per day Percentage of uncollected rent 5.41% 4.96% 1.12% 1.97% 1.04% Vacancy Loss + Bad debt $ 52, $ 47, $ 10, $ 18, $ 9, Rent potential $ 968, $ 965, $ 951, $ 956, $ 897, Level of accounts receivable 23.10% 22.40% 16.02% 18.54% 25.31% Accounts receivable balance $ 18, $ 18, $ 12, $ 14, $ 18, Monthly rent potential $ 80, $ 80, $ 79, $ 79, $ 74, Laundry income per unit $ $ $ $ $ Laundry income $ 41, $ 43, $ 43, $ 47, $ 45, Total apartments (units)