Endowments per Student Down in 2016

How financially fit is your institution? One of the measures that Forbes has used in assessing the financial fitness of postsecondary institutions is endowment assets per FTE. This metric takes the value of endowment assets at the end of the year and divides it by the number of FTE’s. In applying this data to over 2,000 institutions, we discovered that endowment per FTE decreased a little over 2% from 2015 to 2016. However, there are wide variations in and among institutions.

 

Clearly Ivy League schools can distort this metric. Princeton for example has an endowment per student of over $2 million. Endowments also can ebb and flow based on market returns. But discounting for this, you can see how an eroding endowment combined with a rising head count could have implications on financial margin. Regent University for example has had endowment assets decline to five year lows while FTE has actually gone up in 2016. This has resulted in an endowment per FTE decline of 41% and 21% over the past two years.

 

 

We recently updated the Finance Interactive to the most recent data released from IPEDS. This Interactive analyzes a whole host of financial metrics including endowments. You can purchase individual Interactives or license them under our Higher Education Institution library. Individual Interactives are priced between $195 and $295. 

 

We have also created a free Interactive that allows you to see what the trailing five year endowment per student is by institution.  You can individually select sectors or institutions and can also manipulate the thresholds of endowments and students. 

Share This Story

Similar Posts

  • International Student Enrollment Visualized

    In last week’s blog, we talked about out of state enrollment and its potential impact on both the diversity and finances of the university. International enrollment is even considered a bigger potential bonanza to colleges and universities as many international students pay full tuition. According to the Institute of International…

  • Student Default Rates for 2014 Flatten at 15.4%

    Last week we looked at student repayment rates and noted that longer-term repayment rates continue to decline for five and seven year repayment periods. Repayment rates are in essence a measure of optimism as it is the percentage of students who have made progress in paying down their student loans….

  • Tuition Bears Increasing Brunt of Higher Ed. Revenue

    In 2011, Tuition and Fees represented 20.6% of public institutional revenue. In 2015, it has increased to 24.25%. Most of the reshuffling of revenue has come from federal operating grants and contracts as noted by the graphs below. Interestingly, state appropriations have remained relatively constant. Similarly, non-profit institutions have seen tuition…

  • Outpatient Medicare Hospital Costs up 13%

    The 2016 outpatient procedure data shows overall hospital volume up 11% from 2015. Using data from the Outpatient Procedure Analysis Interactive, we also found that the volume times the average full cost (weighted average cost) on a procedure basis has increased 13.3%. We ran the numbers several ways – first…

  • Death Rate Continues to Inch Up

    The mortality (or death) rate increased nominally from 2016 to 2017 going from 844 to 849 deaths per 100,000. This probably is not earthshaking news but based on the overall crude rate, it has actually been increasing since 2009 as noted by the following graph.   Advances in medical care…

  • The Gender Debt Disparity

    The Huffington Post recently posted a very interesting article on gender debt disparity. The article notes that women hold nearly two-thirds of all student debt – a whopping $833 billion dollars. The article postulates that women also take longer to pay off the debt because they earn less than men….