Composite Financial Index (CFI)

Definition

The Composite Financial Index (CFI) provides a more complex picture of the financial health of the institution at a point in time than is possible by simply comparing multiple indicators. The CFI includes four commonly used financial ratios: Primary Reserve Ratio – A measure of the level of financial flexibility Net Operating Revenues Ratio – A measure of the operating performance Return on Net Assets Ratio – A measure of overall asset return and performance Viability Ratio

Formula

Use Case / Interpretation

A CFI score of 3 is the threshold of institutional financial health. A score of less than 3 indicates a need for serious attention to the institution’s financial condition. A score of greater than 3 indicates an opportunity for strategic investment of institutional resources to optimize the achievement of institutional mission.

Tags

debt, revenue, asset

Metadata

Category: Financial Ratios · Added: May 17, 2026