RubinBrown Colleges & Universities Stat Book | PUBLIC INSTITUTIONS

INSTITUTION SCORES PUBLIC

years. The average primary reserve ratio dipped in FY18 to 0.33. There was a significant concentration of institutions that had primary reserve ratio results below the recommended threshold.

Public institutions had an average viability ratio of 1.00 in FY16, 1.06 in FY17, and 1.00 in FY18. It was noted that the average four-year Kansas, four-year Iowa, and two-year institutions had average viability ratios greater than 1:1 while 4-year Missouri and Illinois institutions had average viability ratios under 1:1.

Primary Reserve Ratio Frequency by Percentage of Institution

Viability Ratio Frequency by Percent of Institutions

80%

80%

70%

70%

60%

60%

36.1% 36.1% 41.6%

41.7% 41.7% 33.3%

50%

50%

40%

40%

30.5% 22.2% 27.8%

27.8% 25.0% 5.6%

22.2% 19.4% 19.4%

30%

30%

11.1% 8.3% 16.7% 6

13.9% 13.9% 11.1%

20%

20%

11.1% 5.6% 2.8%

11.1% 8.3% 11.1%

2.8% 5.6% 11.1%

PERCENT OF INSTITUTIONS (%)

PERCENT OF INSTITUTIONS (%)

5.6% 5.6% 0.0%

2.8% 5.6% 5.6%

10%

10%

0%

0%

>1.0

< 0.0

0 to 2

2 to 4

4 to 6

4 to 6

6 to 8

-2 to 0

0.0–0.25

0.75–1.0

0.25–0.50

0.50–0.75

FY16

FY17

FY18

FY16

FY17

FY18

Primary Reserve Ratio Averages by Type of Institution & State * 2-year 4-year IL IA KS MO

Viability Ratio Averages by Type of Institution & State * 2-year 4-year IL IA KS

MO

FY16

FY16

0.28 0.35 0.25 0.59 0.67 0.20

1.07 1.00 0.95 1.31 1.80 0.34

FY17

FY17

0.31 0.35 0.24 0.57 0.69 0.17

1.27 1.06 0.95 1.41 1.87 0.33

FY18

FY18

0.33 0.33 0.22 0.59 0.73 0.09

1.33 1.00 0.89 1.46 1.77 0.18

Revenue and Expense Analysis In the current economic climate, institutions face continued pressure to generate more revenue while keeping tuition rates low and increasing scholarships provided to students. The following analysis seeks to illustrate the trends in revenues and expenses over the last three fiscal years. Return on Net Assets The return on net assets ratio seeks to measure the total increase or decrease in the net position and net assets of each public institution when including all component units. The overall average return on net assets was

Viability Ratio The viability ratio is a similar tool for institutions to evaluate how they could use their expendable net assets to pay down existing capital related debt (excluding borrowing for liquidity purposes). When an institution’s viability ratio falls below 1:1, it runs a greater risk of not being able to sustain itself with institutional resources in the event of a market or industry downturn. Certainly some institutions can thrive at a viability ratio of less than 1:1, but each one should evaluate how affordable its debt might be and work towards its targeted threshold.

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RubinBrown Colleges & Universities Stats 2019