One of the challenges of financial analysis in government is that it is not always obvious whether an increase in a financial ratio is a sign of increasing or decreasing fiscal strength. Explain the significance of each of the following ratios. For each of the ratios indicate whether an increase can be interpreted as a sign of (1) increasing or (2) decreasing fiscal strength. Where appropriate, show how an increase in the ratio can be interpreted as a sign of either. Explain and justify your response.

Cash, short-term investments, and receivables/Current liabilities

Revenue from own sources/Median family income

Number of employees/Population

Property tax revenues/Total operating revenues

Nondiscretionary expenditures/Total expenditures

Unassigned general-fund balance/Total operating revenues

Intergovernmental revenues/Total operating revenues

Expenditures for public safety/Total expenditures