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Co-op Balance Sheet

Started by west77
about 16 years ago
Posts: 1
Member since: Jul 2010
Discussion about
I'm reviewing the co-op financials of a unit I am interested in. I'm comfortable working my way around an income statement, but I'm not sure how to tell if the co-op's balance sheet is healthy. Are there any standard ratios of assets to liabilities or liquid cash to something else that I should be aware of? Here's a mock up of the balance sheet for this 45-unit co-op: -- Assets -- Cash: $250k Building: $1,500k Other: $150k TOTAL: $1,900k -- Liabilities -- Mortgage: $1,350k Other: $100k TOTAL: $1,450k EQUITY: $450k Thanks!
Response by front_porch
about 16 years ago
Posts: 5325
Member since: Mar 2008

One thing to check is the "current ratio," which is current assets to current liabilities -- here "cash" is a current asset and you have no current liabilities listed, but I'm sure in a more granular breakdown there are some -- mortgage payments due imminently, payroll taxes due, electric bills outstanding, etc.

ali r.
DG Neary Realty

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