Ratio analysis of performing arts organizations: A case study of Strathmore

Ratio analysis is a simple and effective tool to characterize financial conditions of an organizations, especially when compared with other similar organizations in the same industry. Nevertheless, it has been understudied in the field of arts management. In February 2005, Strathmore has transformed from a small-sized organization to a large-sized organization with the new Music Center, which consists of a 2,000-seat concert hall, an education wing and an office complex. This is a perfect timing to analyze the financial conditions of Strathmore. Strathmore is analyzed in nine different categories, first chronologically from its opening in 1987 to 2004 to study how it has transformed over the years, then by comparing with eight other performing arts organizations in the U.S., using the data from 2003. This study reveals that Strathmore has started to share some characteristics of other large-sized organizations for better or worse, but it also retains its unique characteristics.