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Key financial indicators

A short list of indicators, checked every month, tells a director most of what they need to know.

IndicatorWhere it comes fromWhat to watch
Enrollment as % of capacityEnrollment recordsCompare with your break-even
Family collection ratePayments received ÷ tuition billedShould stay close to 100%
Months of cash on handBalance sheet cash ÷ monthly expensesA falling trend
Current ratioBalance sheetBelow 1.0 is a warning
Personnel as % of expensesP&LSudden changes
Net marginP&LResults with and without one-time items
Discounts as % of tuitionP&LGrowth without a policy reason