This is an example benchmark report available to participating organisations
Table of Contents
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Introduction
How to use this report
Overview
Sector profile
Income analysis
o Total income
o Ratio of disability services income to total income
o Sources of income
 State/Territory
 Commonwealth (not NDIS)
 NDIS
 Other
Expense analysis (Disability Services)
o Employee expenses by size
o Accommodation costs
o All other property costs
o Motor vehicles expenses
o Accounting and Audit expenses
o All other expenses
In-kind and subsidised expenses
o Use of in-kind and subsidised resources
Balance sheet analysis
o Total current and non current assets by turnover
o Total current and non current liabilities
o Net assets
Employees
o Full time, part time and casual employees by turnover
o Volunteers
Financial ratios analysis by organisation turnover
o Disability income ratio
o Diversity – Average income per income source
o Income per employee
o Net assets ratio
o Interest income ratio
o Donations/grants/bequests ratio
o Profitability ratio
o Liquidity ratio
o Working capital ratio
o Current ratio
o Average number of clients per service type
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o Range of services
Budget and forecasts
o Change in number of clients served
o Change in average income per client
o Change in overall income
o Change in overall expenses
o Change in profit/loss
o Change in vehicle fleet expenses
o Change in training / development expenses
o Change in ICT expenses
o Change in training and staff development expenses
o Change in quality assurance expenses
o Change in compliance expenses
Organisation information
o NFP entities
o Charities and DGR status
o For profit entities
Net Profit Ratio
Your results
Net profit ratio
Profit as cents per
dollar of total income
Example Only
Your
score
All
3.2%
5.0%
3.2c per
$1
5c per $1
Your rank
v. all
Low
52/250
Low
52/250
Your size
cohort
3.0%
3.0c per
$1
Your rank
v. size
cohort
Average
53/90
Average
53/90
How to interpret these results
What is the
Net Profit
Ratio?
What does it
mean?
The amount of net profit achieved per dollar of total income.
Net profit ratio=
Net profit
Total income
It is shown here both as a percentage and as the number of cents in profit
generated per dollar of total income.
All other things being constant, the higher the ratio (or number of cents per
dollar achieved), the greater the financial strength and sustainability of the
organisation. The net profit ratio might indicate how efficient the
organisation is and how well it controls costs. It is used mostly to compare
an organisation’s results over time. Be aware that it is difficult to compare
this ratio across organisations as some may be incurring costs developing
future products/services or delivering efficiency gains, resulting in a fall in
net profit.
What should Generally, the higher the ratio the better. However, a very high ratio may
the ratio be? indicate an organisation that is failing to invest in service quality (e.g.
reducing its investment in training) or innovation (e.g. reducing its
investment in new service development or efficiency improvements). As
such, the target net profit in any individual year is a decision for the board
and should take into account pricing and other factors.
How should
we
respond?
Low – bottom
quartile
Average –
middle two
quartiles
High – top
quartile
Example Only
Organisations with low net profit may be financially
vulnerable – a sudden reduction in income without the
capacity to reduce costs can threaten financial viability.
These organisations are achieving average net profits.
Organisations in this category may be highly efficient.
However, expenditure benchmarks should also be
reviewed to determine if the organisation’s expenditure
appropriate for its size and activities.
Training Expense per FTE
Your results
Your
score
Training and
development costs
per staff member
Change since 2014/15
Example Only
Average
All
Your
rank v.
all
Average
Your size
cohort
Your rank
v. size
cohort
$380
$364
High
182/250
$324
Very high:
85/90
8%
Increase
3%
Decrease
Average
165/250
5% Decrease
High
70/90
How to interpret these results
What is the
Training
Expense
per FTE?
The training expense per FTE is the total training expenses divided by the
total FTE. This data is provided as a dollar amount and graphed as a
change from the last financial year.
Training expenditure per FTE =
What does
it mean?
Total training expenses
Total FTE
The average expenses per FTE provides an indication of your expenses
compared with all others and with your organisation size cohort. Your
training expense per FTE will vary for a number of reasons, including the
types of service you provide, staff turnover, the development of new
services, your location and the nature of your workforce (qualified or not,
and average years experience).
It can be difficult for organisations to determine how much it should spend
on training and this data provides an indication of sector averages this year
and change over time.
What
should the
amount
be?
How
should we
respond?
Example Only
There is no correct amount, but understanding how your organisation
compares with others and whether it is increasing or decreasing its
investment provides data for improved decision making.
Low training
expense per
FTE
Low training expense per FTE may indicate that the
organisation has low turnover, recruits qualified staff or
provides a services which requires relatively low levels of
training. However, it may also indicate that the
organisation is not investing sufficiently in staff
development, which poses a number of risks including to
service quality and compliance, and innovation.
Average
training
expense per
FTE
If your organisation is spending approximately the same
amount as others on training, then it is keeping pace with
the sector. However, boards and CEOs should determine
for themselves if the sector average is appropriate and
sustainable for your organisation.
High training
expense per
FTE
Organisations often need to increase investment in
training when introducing new services, expanding into
new markets, or in response to introducing new structures
or systems (such as new IT systems). Increasing training
expense should improve your returns, either through
better service quality and higher sales or higher efficiency.
In the long run higher than average training expenses that
do not increase income or reduce expenses will result in a
reduced profit margin.