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Finance record 2017/18 - Key Financial Indicator (KFI) definitions

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Finance record 2017/18 - Key Financial Indicator (KFI) definitions

Version 1.0 Produced 2018-09-13

The KFIs shown are a set of calculations extracted from the Finance return. They are not performance indicators and take no account of higher education provider (HEP) characteristics such as the range of subjects taught or the types of provision.

HEPs should note that for working out ratios, the following should be applied to each calculation:

  • For percentage ratios, multiply by 100
  • For days ratios, multiply by 365

1. Surplus/(deficit) as a % of total income

Numerator
Surplus/(deficit) before other gains/losses and share of surplus/(deficit) in joint ventures and associates

Denominator
Income: Total income

2. Staff costs as a % of total income

Numerator
Expenditure: Staff costs

Denominator
Income: Total income

3. Premises costs as a % of total costs

Numerator
Premises: Total premises, Other operating expenses

Denominator
Expenditure: Total expenditure

4. Unrestricted reserves as a % of total income

Numerator
Unrestricted reserves: Income and expenditure reserve – unrestricted
plus
Unrestricted reserves: Revaluation reserve

Denominator
Income: Total income

5. External borrowing as a % of total income

Numerator
Creditors - amounts falling due within one year: Bank overdrafts
plus
Creditors - amounts falling due within one year: Bank loans and external borrowing
plus
Creditors - amounts falling due within one year: Obligations under finance leases and service concessions
plus
Creditors - amounts falling due within one year: Loans repayable to funding council
plus
Creditors: amounts falling due after more than one year: Bank loans and external borrowing
plus
Creditors: amounts falling due after more than one year: Obligations under finance leases and service concessions
plus
Creditors: amounts falling due after more than one year: Loans repayable to funding council

Denominator
Income: Total income

6. Days ratio of Total net assets to total expenditure

Numerator
Total net assets

Denominator
Expenditure: Total expenditure

7. Ratio of current assets to current liabilities

Numerator
Current assets: Total current assets

Denominator
Creditors - amounts falling due within one year: Total creditors (amounts falling due within one year)

8. Net cash inflow from operating activities as a % of total income

Numerator
Net cash inflow from operating activities

Denominator
Income: Total income

9. Net liquidity days

Numerator
Current assets: Investments
plus
Current assets: Cash and cash equivalents
minus
Creditors: amounts falling due within one year: Bank overdrafts

Denominator
Expenditure: Total expenditure
minus
Expenditure: Depreciation

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