Statistics Act, 1999
R 385
Public Audit Act, 2004 (Act No. 25 of 2004)Memorandum of Agreement (2020)Annexure AB. Criteria: Financial Performance IndicatorsB.8. Creditors' percentage over cash resources ratio |
Description:
This indicator assesses whether auditee has sufficient cash resources available to meet its short-term liabilities, i.e. current creditors.
Calculation
The creditors' percentage over cash resources ratio is calculated by dividing the amount of cash resources by current liabilities as indicated in the auditee's statement of financial position.
|
Score |
Rating |
|
Score 3 |
Creditors more than 75% of total cash |
|
Score 2 |
Creditors between 50% and 75% of total cash |
|
Score 1 |
Creditors is 49% or less |
