Financial Performance Ratios for Grant Eligibility

The FMB will look at five ratios during its financial performance review of a First Nation to determine grant eligibility. These ratios are calculated using information from the First Nation’s audited financial statements for the past five years.

  1. Fiscal Growth Ratio (FGR):

    The FGR measures a First Nation’s ability to sustain and grow its revenues.

    Thresholds - The First Nation demonstrates that its average FGR for the period under review is not lower than -5.0%.

  2. Operating Margin Ratio (OMR):

    The OMR measures a First Nation’s ability to balance its revenues and expenses to maintain operations.

    Thresholds - The First Nation demonstrates that its OMR for the period under review is not lower than -5.0%.

  3. Asset Maintenance Ratio (AMR):

    The AMR assesses if a First Nation is investing enough to maintain its existing capital assets and add new assets as they are required.

    Thresholds - The First Nation demonstrates that its AMR for the period under review is not lower than 100.0%.

  4. Net Debt Ratio (NDR):

    The NDR measures a First Nation’s ability to manage its overall level of debt .

    Thresholds - The First Nation demonstrates that its weighted average NDR for the period under review does not exceed 60.0% or that its NDR for the most recent year of the period under review does not exceed 60.0%.

  5. Interest Expense Ratio (IER):

    The IER measures a First Nation’s ability to manage the interest payments on its debt.

    Thresholds - The First Nation demonstrates that its IER for the period under review does not exceed 5.0%.