Acid test ratio

Municipalities throughout the country recorded the acid test ratio of 0,75:1 and 0,76:1 for two financial years ended 30 June 2022 and 30 June 2023 respectively.

Current ratio

Municipalities throughout the country recorded the current ratio of 0,80:1 and 0,81:1 in 2022 and 2023 respectively.

Debt-to-income ratio

Municipalities on average, had debt-to-income ratios of 0,70:1 and 0,69:1 for the financial years ended 30 June 2022 and 30 June 2023 respectively.

Debt ratio

For the financial years ended 30 June 2022 and 30 June 2023, the municipal debt ratios were 0,34 and 0,35 respectively.

Municipal revenue stream

For the municipal year to 30 June 2023, the largest contributor to total municipal revenue of R517 001 million (total revenue less deficit: see tables in Part 3) for the year ended 30 June 2023 was 'government transfers and subsidies' (27,7%), followed by 'sales of electricity' (25,6%), 'property rates received' (16,6%), 'other revenue' (12,7%) (which consists of fines, penalties and forfeits, licences and permits, other transfers and subsidies, etc.), and 'sales of water' (10,5%). 'Refuse removal charges' (2,7%) and 'sewerage and sanitation charges' (4,3%) were the smallest contributors. 

Municipal expenditure patterns

In 2023, the largest contributor to municipal total operating expenditure of R504 689 million (total expenditure less surplus: see tables in Part 3) was 'employee related costs' (26,4%), followed by 'purchases of electricity' (22,6%), 'debt impairment’ (10,9%), ‘contracted services’ (9,5%), 'depreciation, amortisation and impairment' (8,2%), 'operational costs’ (7,5%) (which consists of travel and subsistence, external audit fees, bank charges, facility and card fees, communication, wet fuel, hire charges, insurance underwriting, etc.), and 'purchases of water' (5,8%). The smallest contributors were 'remuneration of councillors' (0,9%), 'transfers and subsidies' (1,1%), 'inventory consumed' (1,9%), 'other expenditure' (2,1%) (which consists of loss on disposal of assets, operating leases, etc.), and 'finance costs' (3,2%).