Analyzing Financial Statements For Path

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Analyzing financial statements for PATH provides a clear picture of the financial impact recent activities have had on the organization and can offer guidance for consulting firms or investors. Being a public service NPO, PATH must strive to maintain a financially sound business model in order to continue offering services in each it’s five platforms. Interested parties or stakeholders would be best served in analyzing the balance sheet or statement of financial position, activity, and cash flow statement to gain a solid understanding of the financial health of the organization.
Balance Sheet In analyzing the balance sheet, PATH has managed to maintain a balanced statement with total assets and total liabilities and net assets balancing at $672,127,000 in 2014. Further review of assets indicates a decrease from 2013 to 2014 in nearly every line item listed including investments, contributions, receivables, capital, and net patents. This decrease in total assets is somewhat offset by a substantial increase in liquidity between 2013 to 2014 with approximately a 75% increase in cash and cash equivalents. Furthermore, the decrease of nearly 79% in patent net assets for the same time frame may raise additional questions. It would seem that the decrease of patent assets and increase of cash and equivalents may be related. Additional review of the 2014 balance sheet reveals a decrease approximately 4.18% in total liabilities. This can be attributed to a decrease of accounts and
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