The FMB will look at six ratios during its financial performance review of a First Nation. These ratios are calculated using information from the audited financial statements for the past five years.
Fiscal Growth Ratio (FGR):
The FGR measures a First Nation’s ability to sustain and grow its revenues.
Operating Margin Ratio (OMR):
The OMR measures a First Nation’s ability to balance its revenues and expenses to maintain operations.
Asset Maintenance Ratio (AMR):
The AMR assesses if a First Nation is investing enough to maintain its capital assets, and add new assets.
Net Debt Ratio (NDR):
The NDR measures a First Nation’s ability to manage its overall level of debt .
Interest Expense Ratio (IER):
The IER measures a First Nation’s ability to manage the interest payments on its debt.
Local Revenue Collection Ratio (LRCR):
The LRCR measures how efficient a First Nation is at collecting local revenues .