Demand Percentage

Demand percentage describe the ten functional classifications of educational and general expenses, as a percentage of total operating revenues.  Trends in the ten categories indicate whether they are consuming more or less of an institution’s revenue stream.

The particular percentage can also be valuable for inter-institutional comparisons, to determine where an organization places its emphasis. The formula’s numerator is the specific functional expense category, as defined in the notes to the financial statements.  The denominator is total operating revenues, reported on the Statement of Revenues, Expenses and Changes in Net Position.