Jordan Microfinance Institutions' Financial Viability to ... - EuroJournals

132 European Journal of Economics, Finance And Administrative Sciences - Issue 42 (2011)
3. Operational Self-Sufficiency: Financial revenue /(Financial expense + Impairment
losses on loans + Operating expenses).
4. Financial Self-Sufficiency: Financial revenue / Adjusted (Financial expense +
Impairment losses on loans + Operating expenses).
5. Financial Revenue / Assets: Adjusted financial revenue / Adjusted average total assets.
6. Profit Margin: Adjusted net operating income / Adjusted financial revenue.
7. Yield on Gross Loan Portfolio (Real): Adjusted yield on gross portfolio (nominal) –
Inflation rate / (1 + Inflation rate).
Risk & Liquidity Indicators
1. Portfolio at Risk >30 days (PAR): Outstanding balance, portfolio overdue > 30 days +
renegotiated portfolio / Adjusted gross loan portfolio.
2. Portfolio at Risk > 90 days: Outstanding balance, portfolio overdue > 90 days +
renegotiated portfolio / Adjusted gross loan portfolio.
3. Write-off Ratio: Adjusted value of loans written–off / Adjusted average gross loan
portfolio.
4. Loan Loss Rate: (Adjusted write-offs – Value of loans recovered) / Adjusted average
gross loan portfolio.
5. Risk Coverage: Adjusted impairment loss allowance / PAR > 30 days.
6. Non-Earning Liquid Assets to Total Assets: Adjusted cash at banks / Adjusted total
assets.