# Finance record 2019/20 - Key Financial Indicator (KFI) definitions

Version 1.1 Produced 2020-12-16

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 â€“ 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 within one year: Loans from directors

*plus*

Creditors - amounts falling due within one year: UK government COVID-19 loan support

*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

*plus*

Creditors: amounts falling due after more than one year: Loans from directors

*plus*

Creditors: amounts falling due after more than one year: UK government COVID-19 loan support

*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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