The composite financial index (CFI), a measure of financial health for colleges and universities, includes which of the following ratios?
A) Primary reserve ratio.
B) Net operating revenues ratio.
C) Return on net assets ratio.
D) All of these ratios are included in the CFI.

Question

Quizplus · Accepted Answer

All of these ratios are included in the CFI. The CFI is a composite of several key financial ratios, including the primary reserve ratio, net operating revenues ratio, and return on net assets ratio. The primary reserve ratio measures a college's ability to cover operating expenses with its available reserves. The net operating revenues ratio measures the proportion of operating expenses covered by operating revenues. The return on net assets ratio measures a college's effectiveness in generating revenue from its investments.

The Composite Financial Index (CFI), a Measure of Financial Health