Ratio Analysis at Private Colleges and Universities in Pennsylvania

• In Event: Government and Not-for-Profit 1

Abstract

This paper provides a comparison of financial ratios for the year ended June 30, 1997 to financial ratios for the year ended June 30, 2011 at 10 non-selective private liberal arts based colleges and universities. Gallagher (1999) provided a summary of ratios at 34 private non-selective liberal arts colleges in Pennsylvania and Ohio for the fiscal years ended June 30, 1997 and June 30, 1996. The original paper was designed to discuss the changes to financial reporting because of the incorporation of Financial Accounting Standards Boards (FASB) Statements 116, 117, and 124. This paper provides business officers at private colleges and universities benchmark comparisons of the changes in areas of financial measurement contained in the annual reports of these institutions including affordability, changes in expenditures, financing issues, revenue sources, and the ratios used by the United States Department of Education to measure the viability of the institutions.

Author

• Michael Joseph Gallagher, DeSales University