College Viability, LLC

When I started College Viability, LLC in 2019, I had no idea that the product would be an app. My first product was an actual college financial statement that I typed my comments on in my Adobe Acrobat software. Really ugly. To paraphrase the old cigarette commercial: "we have come a long way, baby". The 2024 versions of the Private College Viablity apps include special versions for college leaders, one for faculty and staff, and one for students and their families. Learn more details about the versions of the 20204 Private College Viability app at the link below. https://lnkd.in/g9Wq4_Pm #collegeviability #cvapp #collegeclosures #willmycollegeclose #collegefinances #collegeadmissions

Monica Obradovic from the St. Louis Post-Dispatch-Dispatch has a story today titled: "Webster University pushes back against ‘financial distress’ designation" What is interesting about this story is that their accrediting agency Higher Learning Commission 'is warning the public that Webster University is facing financial headwinds that put its educational programs at risk'. Obradovic's story goes on to point out that HLC had noted a reference to doubt about Webster University being able to continue as a 'going concern' in their 2023 audited financial statement. (BTW, there were 17 references that is a lot.) So, to the HLC and other accrediting agencies, does this indicate a shift in your efforts to warn the public more aggressively about a college's weak financial health and viability? If so, what about other colleges with 'going concern' notes? Will we see the same financial distress designation? Will it be released to the media or hidden in the digital canyons of your respective web sites? Note: I did not include a link because the story is behind a paywall. If I see other outlets pick up the story, I will add their link to this post.

Drake University 'Quick Clip' from the October 15, 2024 'The College Financial Health Show' Join Matt Hendricks and Gary Stocker on this special 'Short Clip' (10:30). You will see the Perspective Data Science dashboard for Drake University. This visualization is not normally presented during the show. In this clip you will see how Drake University has had a higher tuition price than its data peers. You will also see the predictive visualization on Drake's future enrollment can be projected based on parameters like retention and yield that can be adjusted on the visualization app. The dashboard is an excellent resource to compare a college with its data peers across dozens of audited financial statement fields, IRS form 990's and IPEDS data. To schedule a demo on the predictive visualization, contact [email protected] This financial health review was originally recorded on October 15, 2024. You can see the FREE visualization at: https://lnkd.in/gbxxThXJ https://lnkd.in/gEMxT9Km The EdUp Experience Drake University Anthony Bieda Sue Mattison Nate Reagen Eric Kwame Adae, Ph.D Earl Martin

Quincy University (IL) is our 'Quick Clip' for today. Matthew D. Hendricks from Perspective Data Science uses visualizations from his AI-generated data set to review and analyze the financial health of this college. Take a look and listen for yet another private college living on the financial health and viability edge. Not only did we look at the past 8 years of audited financial data for QU, we show viewers line items from those audited financial statements. One interesting note: this college appears to have been using cash from an overdrawn checking account in 2023. https://lnkd.in/g9QRN5gW The EdUp Experience Robert Wyatt Thomas Oliver Higher Learning Commission Anthony Bieda Cecilia Livengood, CCEP

There is much higher education news this 2024 Thanksgiving week. Headlines + New layoffs and cutbacks this week + 2 stories that suggest college leaders may be moving more aggressively in their relationships with faculty + Anderson U Fitch rating heads south. + More ugly spin on a college with an unsustainable financial pattern + St. Augustine U sells off the farm to stay afloat https://lnkd.in/gv9DmY27 The following were referenced in this week's podcast. The EdUp Experience Monica Obradovic St. Louis Post-Dispatch Israel Shaw Izikson?J. Brian Charles?Sean Salai Ryan Quinn Rosetta Miller Perry Fitch Ratings Hannibal-LaGrange University Inside Higher Ed The Chronicle of Higher Education Matthew D. Hendricks Anderson University Tennessee State University Boston University Marquette University The Washington Times Saint Augustine’s University Bard College Drexel University Fontbonne University

This story continues to beg the question: 'who is the accreditor looking out for?' It is almost certainly not concerned about students. What kind of education could be expected from college with both chronic and acute financial distress? In checking the 2022 and 2023 audited financial statement, the colleges auditor repeatedly noted there was significant doubt about the college continuing as a going concern. In my experience, auditors are hesitant to raise the issue of 'going concern'. Who is asking the question about the venture capital firm's ultimate intentions with what I assume to be a valuable piece of property on Raleigh-Durham? The story lists a $7M loan at 24% interest rate. This is for a college that can't even meet its payroll. I will have more on this story in next week's 'This Week in College Viability' podcast. https://lnkd.in/giKfADCa

In 3.5 months, Matthew D. Hendricks and Gary Stocker have reviewed the financial health and viability of 52 private colleges on our 'The College Financial Health Show'. It is LIVE on Tuesday mornings at 10:30 a.m. central tie. In this list, there are certainly some financially strong colleges, but there are too many that are clearly without the financial resources to provide a quality education. One of the interesting patterns we observed has been the number of high-quality colleges with strong 4-year graduation rates and strong endowments continuing to struggle with keeping their operating budgets balanced. While none of these colleges will ever close, they continue to meet their operating challenges with layoffs and cutbacks. The Perspective Data Science visualizations that Matt developed has also confirmed that most of these financially unhealthy colleges have also been neglecting their capital expenses associated with maintenance and other infrastructure needs. It is a fair guess that leaky roofs and other maintenance will be a part of life for many of these colleges. Speaking of data science, I want to remind readers and SM followers of the the application of AI technology used in 'The SHOW'. Matt has developed an AI inquiry process that captures audited financial statement data (2016-2023 for now. 2024 soon.) His percentile and 'closed college' markers provide an easy data-generated peer data set with which to compare colleges. You will see us use that regularly in 'The SHOW'. About half of the colleges we review are starting to come from viewers. If you have some private colleges you would like us to include in 'The SHOW', share those in a reply or connect with me to get access to my email. https://lnkd.in/gngha6N8 The EdUp Experience #willmycollegeclose #collegeclosures #collegeadmissions

This is the epitome of ‘morsel to meals’ story.?I heard this analogy from the talented Kate Colbert earlier this year. On a very, small amount of information, a great meal of a conclusion is written. Here is a quote used in different media reports regarding Hannibal-LaGrange University University (MO) .?As you will see below.?I will beg to differ on the assessment from news reports and the Higher Learning Commission. "HLGU leaders see the decision as marking a new era of strength, stability and growth for the institution. And they believe this positive development underscores the HLGU’s commitment to ensuring a strong future for its students and faculty, as well as for the wider community." " Following a recent site visit, the HLC’s assessment team noted HLGU’s diligent work toward financial health, improved enrollment strategies, and responsible endowment management. In their report, the HLC team highlighted the university’s steady progress, stating, “HLGU has implemented the difficult corrections to create a more balanced budget, to manage cashflow, to begin repaying endowment borrowing, and to return HLGU enrollment to growth. These efforts have resulted in a successful turnaround.” Of course, colleges have cheerleaders in the local media and professional organizations. But, I beg to differ.? To the data. Since 2018 FAFSA submissions decreased by 700 Fall first-time undergrads down 100 Fall transfer-ins down 80 FTE students down 395 The comparisons from 2010 are worse. In 2022, they did a huge 13.6% draw on their endowment.?HLG’s already low endowment (around $10M in 2022) is now down even more.?Since 2016, this college’s endowment is DOWN 3.2%.?The national median:?UP 45%. Since 2017 HLG’s CAPEX to depreciation has been below the minimum investment threshold of 1.0.?Analysis:?Campus infrastructure is being allowed to deteriorate. 4-year graduation rates:?averaged 26% from 2015-2022. If a college can't even graduate 40% of its students in 4 years, I suggest they are nothing more than a tuition collection agency. Why does someone else have to point this out? Accrediting agencies like HLC continue to accept financially unhealthy colleges for accreditation only on their word that they will do better.?HLG may have crossed its I’s and dotted it’s t’s, but there is no demonstrable proof in the data that it has recovered.?To the contrary, there is every bit of evidence to suggest a very short runway to even survive. What kind of mutual back-scratching is going on here??When the reviewers for these agencies submit their reports on a college, does anyone at HLC read them with a critical eye??Who is protecting the students and their families who are paying to attend these financially weak colleges? It certainly isn’t’ the accrediting agencies. Thanks to Matthew D. Hendricks at Perspective Data Science for his AI-generated data. https://lnkd.in/gjiEfwhY

The College Financial Health Show with Matthew D. Hendricks & Gary Stocker for November 19, 2024 This week we look at the financial health and viability of 3 Virginia private colleges. Bethany College (WV) (at 2:30 ) Columbia College (MO) (at 20:45 ) Wheaton College Massachusetts (MA) (at 22:55) Highlights for this week's review: This week's colleges being reviewed show mixed results. Bethany College is almost certainly on an unsustainable financial pathway. We note their overuse of endowment funds and loans from the state of West Virgina. Both Columbia College and Wheaton College are using different approaches to support net tuition revenue challenges. Wheaton appears to be using debt and its associated increased liablities. Columbia is engaged in a challenging use of using endowment funds to support operations. These two have longer recovery runways than Bethany. However, like almost all colleges, driving incremental operational revenue will be the difficult challenge. https://lnkd.in/gKbsadpy The EdUp Experience Jamie Caridi, Ph.D. Lori Weaver Jennifer Crump, MS Jonathon Moberly JD, MBA Melissa Montgomery,CAP?,CFRE Jeff Cutting Merritt Crowley Roger Stackpoole

The College Financial Health Show with Matthew D. Hendricks and Gary Stocker is live Tuesday morning at 10:30 a.m. central time. We will share up to 13 financial trend visualizations for: Bethany College (WV) Columbia College (MO) Wheaton College Massachusetts They include: (base year is 2016 for percent changes) 1. Net income margin 2. Operating cash flow margin 3. Ratio of endowment value to expenses 4. Percent of endowment appropriated for expenses 5. Ratio of unrestricted net assets to expenses 6. Ratio of cash and cash equivalents to expenses 7. Ratio of total liabilities to revenue 8. Percent change in net tuition revenue 9. Percent change in total operating revenue 10. Percent change in total operating expenses 11. Percent change in endowment value 12. Percent change in unrestricted net assets 13. Percent change in total liabilities 14. CAPEX to depreciation ratio Matt has added a closed college reference set to each visualization. Watch to see which if any of these colleges are in that danger zone. We also take a look at enrollment trends, graduation rates, unfunded grants, and much more. Join us live at the link below. https://lnkd.in/g_BrMa_r (A recorded version will be posted to the College Viability YouTube channel.)