cOST-sTRUCTURE |
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Compensation Expense
Description:
The compensation expense ratio identifies the percentage of total functional expenses allocated to employee salaries, wages, benefit plans, and bonuses.
Impact:
This ratio indicates how concentrated an organizations resources are spent in labor/wages. Industries with larger work force needs and/or requirements typically see a greater portion of their capital spent on compensation
Calculation:
[Employee Benefits, Salaries, and Compensation]/[Total Functional Expenses]
Description:
The compensation expense ratio identifies the percentage of total functional expenses allocated to employee salaries, wages, benefit plans, and bonuses.
Impact:
This ratio indicates how concentrated an organizations resources are spent in labor/wages. Industries with larger work force needs and/or requirements typically see a greater portion of their capital spent on compensation
Calculation:
[Employee Benefits, Salaries, and Compensation]/[Total Functional Expenses]
Administrative Expense
Description:
The administrative expense ratio shows how much of the expenses the organization is using to cover all the functional expenses in comparison to the overall expenses which includes employee compensation.
Impact:
This ratio indicates how various overhead and administrative expenses change in relation to overall expenses. The higher the ratio is, the greater portion of expenses are comprised of administrative costs.
Calculation:
[Administrative Expenses]/[Total Functional Expenses]
Description:
The administrative expense ratio shows how much of the expenses the organization is using to cover all the functional expenses in comparison to the overall expenses which includes employee compensation.
Impact:
This ratio indicates how various overhead and administrative expenses change in relation to overall expenses. The higher the ratio is, the greater portion of expenses are comprised of administrative costs.
Calculation:
[Administrative Expenses]/[Total Functional Expenses]
Fundraising Expense
Description:
The fundraising expense ratio measures the amount of expenses incurred on fundraising based on the total functional expenses of the business. Fundraising expenses include expenses that are generated from efforts to raise funds for the organization.
Impact:
This ratio indicates how organizations prioritize spending on fundraising over time. Most organizations and industries that rely on special events or contributions as a large part of their income will have a higher fundraising expense ratio.
Calculation:
[Fundraising Expenses]+[Other Expenses 24F])/[Total Functional Expenses]
Description:
The fundraising expense ratio measures the amount of expenses incurred on fundraising based on the total functional expenses of the business. Fundraising expenses include expenses that are generated from efforts to raise funds for the organization.
Impact:
This ratio indicates how organizations prioritize spending on fundraising over time. Most organizations and industries that rely on special events or contributions as a large part of their income will have a higher fundraising expense ratio.
Calculation:
[Fundraising Expenses]+[Other Expenses 24F])/[Total Functional Expenses]