Statement of Financial Position

Net Assets divided by Total Assets formula on blackboard

Solvency Ratio

The solvency ratio measures a nonprofit's financial health by showing the proportion of assets financed by net assets versus debt, crucial for long-term sustainability and donor confidence.
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Two-sided scale balancing assets and liabilities with net assets as balance point

Statement of Financial Position (Balance Sheet)

The Statement of Financial Position provides a snapshot of a nonprofit's financial health, showing assets, liabilities, and net assets to assess liquidity, sustainability, and stewardship for funders, boards, and partners.
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Large glowing ledger symbolizing total assets on desk

Total Assets

Total assets represent all resources a nonprofit owns or controls, reflecting its financial capacity and ability to sustain long-term initiatives in social innovation and international development.
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Balanced scale showing assets and liabilities net assets in vector style

Total Liabilities and Net Assets

Total liabilities and net assets provide a comprehensive snapshot of a nonprofit's financial position, reflecting accountability, transparency, and the balance between obligations and resources.
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Total Net Assets

Total net assets measure a nonprofit’s financial strength by showing the difference between assets and liabilities, reflecting stability, sustainability, and capacity to sustain impact over time.
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Formula for working capital ratio on blackboard with green and gold accents

Working Capital Ratio

The working capital ratio measures a nonprofit's liquidity relative to expenses, indicating operational resilience and helping guide reserve policies and strategic decisions in social innovation and international development.
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