2010 - Yarriambiack Council

NOTES TO THE ACCOUNTS
Note 40 Financial Ratios (continued)
(2) Working Capital Ratio
2009/2010 2008/2009 2007/2008
$ % $ % $ %
(To assess a Council’s ability to meet
current commitments)
Current Assets
Current Liabilities
10,152
2,857
355.34%
8,657
3,004
288.18%
7,536
3,557
211.06%
(3) Adjusted Working Capital Ratio
(To assess a Council’s ability to meet
current commitments)
Current Assets
Current Liabilities
Current Liabilities have been reduced to
reflect the long service liability that is
shown as a current liability because
Council does not have an unconditional
right to defer settlement of the liability for
at least twelve months after the reporting
date even though it is unlikely to fall due
within 12 months after the end of the
period.
10,152
1,963
517.17%
8,657
2,111
410.09%
7,536
3,054
246.76%
(4) Debt Commitment Ratio
(To identify Council’s debt redemption
strategy)
Debt Servicing & Redemption
Rate Revenue
490
6,814
7.19%
243
7,064
3.43%
13
6,773
0.19%
The strategy involves the payment of loan
principal and interest, finance lease
principal and interest.
(5) Debt Servicing Ratio
(To identify Council’s capacity to service
its outstanding debt)
Debt Servicing Costs
Total Revenue
14
18,668
0.07%
21
17,439
0.12%
33
15,906
0.21%
Debt servicing costs refer to the payment
of interest on loan borrowings, finance
lease interest and bank overdraft.
(6) Revenue Ratio
(To identify Council’s dependence on
non-rate income)
Rate Revenue
Total Revenue
6,814
18,668
36.50%
7,064
17,439
40.51%
6,773
15,906
42.58%
Annual Report 2009/10 82