Board of Visitors minutes April 7, 2006 | ||
Viability Ratio
This ratio indicates one of the most basic determinants of financial health by measuring the availability of liquid and expendable net assets to aggregate debt. The ratio measures the medium- to long-term health of the University’s balance sheet and debt capacity and is a critical consideration of universities with the highest credit quality.
Many factors influence the viability ratio, affecting both the assets (e.g., investment performance, philanthropy) and liabilities (e.g., timing of bond issues), and therefore the ratio is best examined in the context of changing market conditions so that it accurately reflects relative financial strength.
UNRESTRICTED NET ASSETS
+RESTRICTED EXPENDABLE NET ASSETS
>2.5x
AGGREGATE DEBT
Board of Visitors minutes April 7, 2006 | ||