Key balance sheet indicators
| Indicator | How to calculate it | What it tells you |
|---|---|---|
| Current ratio | Current assets ÷ current liabilities | Whether the program can pay its short-term bills. Above 1.0 is the minimum; many lenders like 1.5 or more. |
| Months of cash on hand | Cash ÷ average monthly expenses | How long the program could operate if income stopped. Many programs aim for at least 1–3 months. |
| Receivables compared with monthly revenue | AR ÷ monthly revenue | Whether money owed to the program is growing faster than the program is earning it |
At March 31, Harbor Oak has about $105,000 in cash and savings and spends about $84,000 a month, a little over one month of cash on hand.