The March 11, 2025 College Financial Health Show college ratings

Name: The March 11, 2025 College Financial Health Show college ratings
Uploaded: 2025-03-12T03:24:32+00:00
Duration: 52 s
Channel: Gary Stocker
Description: In this segment of the College Financial Health Show, speakers A and Matt evaluate the financial health of three institutions. They label Antioch…

12 Mar 2025 · 1 min

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In this segment of the College Financial Health Show, speakers A and Matt evaluate the financial health of three institutions. They label Antioch University as unsustainable, citing a cash shortfall at the end of 2023, reliance on a $1 million investment sale, and a runway of less than five years, raising concerns about its ability to survive beyond 2024. Dominican University in Illinois is deemed sustainable, supported by three consecutive years of positive net income and cash flow. Dominican University in New York is classified as unsustainable despite a longer runway of over five years, indicating potential future challenges. The discussion highlights key financial indicators—cash reserves, investment liquidation, net income, cash flow, and runway length—as the basis for their sustainability ratings.

So Matt, we've got 3 colleges today. Let's take a look at what we have for our college financial health rating. And Matt, for Antioch, we have them as unsustainable with a short runway of less than 5 years.
Yeah. Yeah. Um, I really would like to see their 2024 audit. I wonder, I mean, it looked like they're almost out of cash at the end of 2023. So the way that they paid their bills in 2023 was to sell $1 million of investments. Again, only $2 million left, and they needed another million of cash drawdown. So they didn't have much cash left and $2 million left in investments. It was difficult for me to see how they get past 2024, let alone '25, if they keep that up, right?
Yeah. Yeah. And then Dominican University in Illinois, we have them as sustainable.
Yeah, they have, they have a positive net income last 3 years. Positive cash flow, obviously. They look fine to me. Looks good.
And then Dominican University in New York, kind of problematic. We have them rated as unsustainable, but a longer runway, 5+ years.
Yeah, again, it's unsustainable to run net income losses, right? Unless you got something quirky with your— maybe the depreciation number's wrong or something like that. But depreciation is a real cost, right? They're just not covering it right now. So if you do that over 100 years, eventually your whole campus will crumble, right? So you'll run out of cash. Eventually. It just takes a lot longer though. So perhaps they're, the unsustainable long-run way case, I think makes sense for them.