National Treasury regards one to three months of operating cash as a healthy buffer. Cash cover is the simplest early warning in municipal finance: a council can report a surplus on paper and still be unable to pay salaries.
A negative figure means the municipality closed the year with an overdrawn position, owing more on its bank facilities than it held.
| Municipality | Province | Months of cash | Current ratio | Grade |
|---|---|---|---|---|
| Ngqushwa | Eastern Cape | -52.0 | 2.19:1 | D |
| Raymond Mhlaba | Eastern Cape | -17.9 | 1.69:1 | D |
| !Kai! Garib | Northern Cape | -14.9 | 0.21:1 | F |
| Tokologo | Free State | -13.6 | 0.24:1 | F |
| Bushbuckridge | Mpumalanga | -12.6 | 1.36:1 | D |
| Bitou | Western Cape | -12.4 | 2.24:1 | D |
| Joe Gqabi | Eastern Cape | -11.1 | 0.91:1 | D |
| Siyancuma | Northern Cape | -10.8 | 0.33:1 | F |
| Nongoma | KwaZulu-Natal | -10.3 | 0.34:1 | F |
| Dikgatlong | Northern Cape | -8.6 | 0.63:1 | E |
| Umzumbe | KwaZulu-Natal | -8.6 | 0.07:1 | F |
| Okhahlamba | KwaZulu-Natal | -8.2 | 0.91:1 | E |
| Thembelihle | Northern Cape | -7.1 | 0.41:1 | F |
| Mafube | Free State | -6.9 | 0.10:1 | F |
| uPhongolo | KwaZulu-Natal | -5.8 | 0.93:1 | E |
Short-term solvency
The current ratio compares what a municipality owns and can quickly turn into cash against what it owes within the year. Below 1.0 means short-term obligations exceed short-term assets.
Cash cover and the current ratio both feed the financial health grade shown on every municipality profile, alongside the Auditor-General’s opinion, operating margin and irregular spending.
Figures on this page come from National Treasury, Statistics South Africa and the Auditor-General, as set out in the sources and methodology. Read the methodology