Acid test ratio

Municipalities throughout the country recorded the acid test ratio of 0,75:1 and 0,73:1 for two financial years ended 30 June 2024 and 30 June 2025 respectively.

Current ratio

Municipalities throughout the country recorded the current ratio of 0,80:1 and 0,77:1 in 2024 and 2025 respectively.

Debt-to-income ratio

Municipalities on average, had debt-to-income ratios of 0,70:1 and 0,71:1 for the financial years ended 30 June 2024 and 30 June 2025 respectively.

Debt ratio

For the financial years ended 30 June 2024 and 30 June 2025, the municipal debt ratios were 0,37:1 and 0,38:1 respectively.

Municipal revenue stream

The largest contributor to total municipal revenue of R619 970 million (total revenue less deficit: see tables in Part 3) for the year ended 30 June 2025 was 'sales of electricity' (27,0%), followed by 'government transfers and subsidies' (26,2%), 'property rates received' (16,4%), 'other revenue' (14,0%) (which consists of fines, penalties and forfeits, licences and permits, other transfers and subsidies, etc.) and 'sales of water' (9,5%). 'Refuse removal charges' (2,6%) and 'sewerage and sanitation charges' (4,3%) were the smallest contributors.

 Municipal expenditure patterns

For the financial year ended 30 June 2025, the largest contributors to municipal total operating expenditure of R608 123 million (total expenditure less surplus: see tables in Part 3) were 'employee related costs' and 'purchases of electricity' (25,2%), followed by 'debt impairment' (11,9%), 'contracted services' (9,8%), 'operational costs' (6,9%) (which consists of travel and subsistence, external audit fees, bank charges, facility and card fees, communication, wet fuel, hire charges, insurance underwriting, etc.), 'depreciation, amortisation and impairment' (6,9%) and 'purchases of water' (6,2%). The smallest contributors were 'transfers and subsidies' (0,8%), 'remuneration of councillors' (0,9%), 'inventory consumed' (1,7%), 'other expenditure' (1,8%) (which consists of loss on disposal of assets, operating leases, etc.) and 'finance costs' (2,8%).