Over a decade ago, sensing that existing paradigms for assessing financial
condition were too complex for most governments to use, a professor
from Southwest Missouri State University introduced a relatively simple
analytical tool that has become widely popular among finance officers
and financial analysts alike. Dr. Ken W. Brown’s (1993) ‘‘10-point test’’
employed ten ratios indicative of factors relevant to financial condition.
Using the 10-point test, a government would calculate the ratios and would
gain or lose points depending on how favorably or unfavorably the ratios
compared with the ratios of governments with similarly-sized populations.
The resulting sum, when compared with other, similar governments, or
with the results of previous years for the same government, could provide
Over a decade ago, sensing that existing paradigms for assessing financialcondition were too complex for most governments to use, a professorfrom Southwest Missouri State University introduced a relatively simpleanalytical tool that has become widely popular among finance officersand financial analysts alike. Dr. Ken W. Brown’s (1993) ‘‘10-point test’’employed ten ratios indicative of factors relevant to financial condition.Using the 10-point test, a government would calculate the ratios and wouldgain or lose points depending on how favorably or unfavorably the ratioscompared with the ratios of governments with similarly-sized populations.The resulting sum, when compared with other, similar governments, orwith the results of previous years for the same government, could provide
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