Financial Analysis

Financial Analysis Order Description Amyotrophic lateral sclerosis (ALS), also called "Lou Gehrig's Disease," is a progressive degenerative disease that affects nerve cells in the brain and spinal cord. A number of organizations are dedicated to defeating the disease by raising money and directing research to this end. The ALS Association in the U.S. recently used The Ice Bucket Challenge to raise over $100 million for such efforts. An example is here: https://www.youtube.com/watch?v=Mmax3yEZX58 . The ALS Foundation Netherlands is attempting to raise awareness and funds with its �I�m Already Dead� Campaign found at: https://www.youtube.com/watch?v=nlofEdLZcNk . Briefly compare and contrast the approaches of these two organizations. There are many other non-profit organizations (see List of Nonprofit Organizations for examples https://charity.lovetoknow.com/List_of_Nonprofit_Organizations) that depend on donations to foster their efforts as well. Financial ratios can be used help contributors assess the financial health of a non-profit organization or how efficiently/effectively it uses its donations. There is a challenge in applying the financial analysis tools used by for-profit organizations to nonprofit organizations. For example, nonprofit organizations generally do not have profit margins; revenue streams are different; and, equity is much different. Create and name a new ratio (i.e., one that is not in the text) that could be used in the financial analysis of a non-profit organization. Identify a specific non- profit organization; explain what financial information would be needed to use your ratio; how the ratio would be calculated; and, what the ratio would communicate about the financial health of the non-profit organization. Discuss what you see as the pros and cons of your ratio.