# How do you calculate operational sustainability?

## How do you calculate operational sustainability?

Calculate Operational Self Sufficiency

1. Operating revenues = financial income = 2,710,000.
2. Financial expenses = 1,340,000.
3. Impairment expense = 140,000.
4. Operating expense = 650,000.

## What are sustainability ratios?

Rate of Return on Capital Ratio : Calculates surplus generated from operations of a MFI to its average capital fund/net worth for the period. If an institution’s ROTA is fairly constant, this ratio can be used to forecast earnings in future periods. …

## What is OSS in microfinance?

This paper is to determine factors best describing a microfinance institution’s (MFI’s) operational self- sufficiency (OSS). The OSS is defined as the ratio of an MFI’s operating revenues to it operating expenses including the financial costs and impairment losses on loans.

## How do you calculate self-sufficiency ratio?

The self-sufficiency ratio (SSR) is defined as: SSR = production x 100/(production + imports – exports). The SSR can be calculated for indi- vidual commodities, groups of commodities of similar nutritional values and, after appropriate conversion of the commodity equations, also for the aggregate of all commodities.

## What should be included in a sustainability ratio?

Profitability Sustainability Ratios. For the purpose of this calculation, business revenue should exclude any non-operating revenues or contributions. Total expenses should include all expenses (operating and non-operating) including social costs. A ratio of 1 means you do not depend on grant revenue or other funding.

## Which is the best definition of operational sustainability?

‘Operational sustainability’ is a method of evaluating whether a business can maintain existing practices without placing future potential resources at risk. Sustainability can refer to any one of a variety of areas, say ecological resources, social or economic resources.

## What is the OSS ratio of a company?

OSS ratio = 2,710,000 / (1,340,000 + 140,000 + 650,000) = 127.23% So the operational self-sufficiency ratio is 127 % which means that the company is doing well to earn sufficient operational revenues to cover its total cost.

## How to calculate the operational self sufficiency ratio?

Hence, we can calculate operational self sufficiency as below: OSS ratio = 2,710,000 / (1,340,000 + 140,000 + 650,000) = 127.23% So the operational self-sufficiency ratio is 127 % which means that the company is doing well to earn sufficient operational revenues to cover its total cost.