1. THE CITY OF SEATTLE, WASHINGTON
FINANCIAL CONDITION ANALYSIS
By: Anthony Bah & Christabel Ghansah

2. BACKGROUND: DEMOGRAPHIC FACTORS (SEATTLE VS
PORTLAND)
 Population: 662,400 vs. 601,510
 Age of population: 25-34 (>120K) (vs 110,373)
 Unemployment rate: 4.9% vs. 5.4% (4.9% nationwide)
 Income level: $68,588 vs $54,808 ($54,236 nationwide)
 Educational/skill level (persons of age 25+)
Bachelor or higher - 57% vs 44.4%
High school graduate or higher – 93.1% vs 90.9%

4. BACKGROUND: ECONOMIC FACTORS
 Healthy employment growth
 Strong technology sector
 Powerful industry
Amazon
Boeing
 Other industries – health services, professional and technical services
 Some facts:
147% increase in construction activities
3% increase in employment growth
personal income growth between 4.6% and 4.8%

5. RATIO ANALYSIS
Liquidity
Current ratio 
Quick ratios 
Leverage and Coverage Ratios
Debt to asset 
Times interest earned 
Gov't Business Total
3.11294 1.461941 2.186747
3.096514 1.429866 2.127615
Gov't Business Total
0.402022 0.733703 0.588103
7.212975 13.33027

6. CONT’D – RATIO ANALYSIS
Profitability Ratios
Total Margin 
RONP 
Solvency
Long term debt burden 
Debt service 
Gov't Business Total
0.115506 0.109646 0.112522
0.061511 0.109813 0.078681
Gov't Business Total
1.773836 6.232896 8.006732
0.006567

7. CONT’D – RATIO ANALYSIS
Revenues and Expenditures Indicators
Revenue per capita 
Expenses per capita 
Gov't Business Total
2.654861 2.753699 5.40856
2.334724 2.457742 4.792465

8. TRENDS IN REVENUES AND EXPENSES

9. CONT’D – TREND IN REVENUES AND EXPENSES

10. WEAKNESSES VS STRENGTHS
 Weaknesses
 Bad governmental expenses management
 High dependency on the industry sector
 High employment concentration in only two companies: Amazon and Boeing
 Overall performance and management of assets not really good
 High cost of servicing debt
 Strengths
 Abundance of cash on hand
 Good economy

11. RECOMMENDATIONS
 Debt to asset ratio  reduce amount of debt used to finance debt
How? Change in net position
 Create incentives for other industries
 Diversify revenue-generating sectors

12. REFERENCES
 http://www.census.gov/quickfacts/table/EDU635214/5363000
 http://www.census.gov/quickfacts/table/AGE135215/4159000
 http://www.bls.gov/regions/west/summary/blssummary_seattle.pdf
 http://www.bls.gov/regions/west/summary/blssummary_portland_or_wa.pdf
 http://www.seattle.gov/dpd/cityplanning/populationdemographics/aboutseattle/p
opulation/default.htm