Financial Outcomes

The financial section of the framework evaluates schools’ near-term and long-term sustainability measures. The financial measures help evaluate a school’s responsible use of public funds by indicating the financial health of the school.

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Financial Outcomes

The PCSC uses standard metrics as a starting point to gauge a charter school's financial health.

Financial Measures

Current Ratio

Meets Standard: The school has a current ratio of at least 1.1 (or between 1.0 and 1.1 with a 1-year positive trend).

Unrestricted Days Cash

Meets Standard: The school has 60 days cash OR between 30- and 60-days cash and one year trend is positive.

*Note: Schools in their first or second year of operation must have a minimum of 30 days cash.

Default

Meets Standard: The school is not in default of any financial obligations and did not experience any instances of default during the fiscal year.

Debt to Asset Ratio

Meets Standard: The school’s debt to asset ratio is less than .9.

Debt Service Coverage Ratio

Meets Standard: Debt Service Coverage Ratio is between 1.1 and 1.49.

Financial Compliance

Meets Standard: Finances are managed in compliance with GAAP. The schools’s internal controls are compliant. There were no audit findings in the most recent financial audit.