Seattle - Financial Condition Analysis
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![Page 1: Seattle - Financial Condition Analysis](https://reader034.fdocuments.net/reader034/viewer/2022042706/589c9d641a28abf4148b53bf/html5/thumbnails/1.jpg)
THE CITY OF SEATTLE, WASHINGTON
FINANCIAL CONDITION ANALYSIS
By: Anthony Bah & Christabel Ghansah
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BACKGROUND: DEMOGRAPHIC FACTORS (SEATTLE VS PORTLAND)
Population: 662,400 vs. 601,510
Age of population: 25-34 (>120K) (vs 110,373)
Unemployment rate: 4.9% vs. 5.4% (4.9% nationwide)
Income level: $68,588 vs $54,808 ($54,236 nationwide)
Educational/skill level (persons of age 25+)Bachelor or higher - 57% vs 44.4%High school graduate or higher – 93.1% vs 90.9%
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BACKGROUND: ECONOMIC FACTORS Healthy employment growth Strong technology sector Powerful industry
AmazonBoeing
Other industries – health services, professional and technical services Some facts:
147% increase in construction activities3% increase in employment growthpersonal income growth between 4.6% and 4.8%
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RATIO ANALYSISLiquidity
Current ratio Quick ratios
Leverage and Coverage Ratios
Debt to asset Times interest earned
Gov't Business Total3.11294 1.461941 2.1867473.096514 1.429866 2.127615
Gov't Business Total0.402022 0.733703 0.5881037.212975 13.33027
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CONT’D – RATIO ANALYSISProfitability Ratios
Total Margin
RONP
Solvency
Long term debt burden Debt service
Gov't Business Total0.115506 0.109646 0.1125220.061511 0.109813 0.078681
Gov't Business Total1.773836 6.232896 8.0067320.006567
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CONT’D – RATIO ANALYSISRevenues and Expenditures Indicators
Revenue per capita Expenses per capita
Gov't Business Total2.654861 2.753699 5.408562.334724 2.457742 4.792465
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TRENDS IN REVENUES AND EXPENSES
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CONT’D – TREND IN REVENUES AND EXPENSES
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WEAKNESSES VS STRENGTHS Weaknesses Bad governmental expenses management High dependency on the industry sector High employment concentration in only two companies: Amazon and
Boeing Overall performance and management of assets not really good High cost of servicing debt Strengths Abundance of cash on hand Good economy
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RECOMMENDATIONS Debt to asset ratio reduce amount of debt used to finance debt
How? Change in net position
Create incentives for other industries
Diversify revenue-generating sectors
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REFERENCES http://www.census.gov/quickfacts/table/EDU635214/5363000 http://www.census.gov/quickfacts/table/AGE135215/4159000 http://www.bls.gov/regions/west/summary/blssummary_seattle.pdf http://www.bls.gov/regions/west/summary/blssummary_portland_or_wa.
pdf http://www.seattle.gov/dpd/cityplanning/populationdemographics/abouts
eattle/population/default.htm