Notably, there are diverse ratios that are applicable in assessing financial situations. These ratios provide corrective measures in cases where potential financial problems are identified.
The expected ratio is 2 but the result indicates 1.15 this shows that this organization is slightly ill prepared to deal with its financial emergencies especially those that may call for greater involvements. Therefore, it should increase its net worth to attain the required limits to enable it cope with its future financial challenges (Johnson Lambert & Co.LLP, 2011).
This ratio is positive thereby indicating that the assets are more worth compared to liabilities. The figure is too low; thus, that the organization needs to increase its net worth in order to stand in a better position in repaying its debts using its available assets.
This shows that this organization has fewer assets that it can convert into cash easily; hence, engage on activities that will increase its assets especially the fixed assets to meet this financial safety.
From the assessment of Community in Schools financial ratios, there are possible recommendations that can be made. First, in the case of financial performance, the organization has an increasing surplus in its budget and the trend can still get better through growing the liquid assets base. The organization still needs to benchmark the financial management of other successful organizations. Particularly, there are needs for the organization to reexamine its management of revenues. The organization should initiate proper and efficient utilization of all program funds in order to minimize operation expenses. As the organization continues to grow, the costs of delivering its programs will also increase (Tuckman and Channg, 1991). This is likely to cause economic problems during emergency situations. Therefore, the organization should focus on enhancing its net worth.
The organization should also focus its attention more on fundraising in