Nonprofit leaders seeking to understand the organization's financial situation usually start by reviewing the financial reports. Understanding the financial information is the building block of any financial discussion. Beyond understanding reports, much can be learned from anaylsis of the information and intrepretation of what it is telling you. For a more technical financial analysis, ratios can be used to deepen understanding and interpretation. Financial ratios are an established tool for business and nonprofits. While there are dozens of ratios that can be calculated, most nonprofits can use a handful of them to learn more about their financial condition. This tool provides the description and calculation of 14 ratios including a mix of balance sheet and income statement ratios. Once familiar, use the Ratio Calculation Worksheet to get started.