Viability Ratio

The viability ratio indicates the relative liquidity of the organization in measuring the availability of sufficient cash, or other convertible assets, to pay institutional obligations as of the date of the Statement of Net Assets,

There are no absolute thresholds for this ratio in that long-term debt need not be paid off at once.  Of more importance are long-term trends in direction.  Long-term declines would limit the ability to deal with adverse impacts or to take on new projects. 

The numerator (expendable net assets) consists of unrestricted net assets and expendable restricted net assets.  The denominator is total non-current liabilities (e.g., long-term debt).  Both are found in the Statement of Net Position.