: Finances

Liquid Funds Indicator

(Total Net Assets - Restricted Net Assets - Fixed Assets) / Average Monthly Expenses
The liquid funds indicator is similar to the defensive interval in its use but is more conservative in removing assets with restrictions on them from the calculation. It also determines the number of months of expenses that can be covered by existing assets.

This ratio is only available for organizations completing the detailed IRS Form 990. Smaller organizations that choose to complete the Form 990-EZ do not report on this variable.