KNOXVILLE —Johnson University has received an “A” in the 2016 Forbes College Financial Grades, ranking 3rd on the Christian Colleges and Universities Financial Strength list.
Forbes lists Johnson’s financial GPA as being 4.132 on a 4.5 scale.
This scale measures the fiscal soundness of more than 900 four-year, private, not-for-profit schools with at least 500 students.
According to Forbes,the grade measures financial fitness as determined by nine components broken into three categories.
Forbes staff writer, Matt Schifrin, mentioned the nine variables used to determine balance sheet and operational strength:
- Endowment Assets Per FTE (15%) Year-end endowment assets divided by the number of 12 month full-time equivalent students.
- Primary Reserve Ratio (15%)How well a college’s expendable assets cover its annual expenses.
- Viability Ratio (10%)The amount of expendable assets a college has relative to its debt load.
- Core Operating Margin (10%)How well a college meets its obligations (such as instructional expenses and students services) from the tuition, grants, gifts, and investment revenue it receives.
- Tuition As A Percentage of Core Revs (15%)How dependent a college is on tuition for core revenues.
- Return On Assets (10%)Whether a college’s assets are actually growing.
- Admission Yield (10%)The percentage of admitted students who actually choose to attend a particular college.
- Percent Freshman Getting Institutional Grants (7.5%)The percentage of students actually getting institutional grants or rebates from colleges to attract enrollment.
- Instruction Expenses Per FTE (7.5%) How much money a particular college devotes to the core mission of higher education.
In addition to the Forbes ranking, the Chronicle of Higher Education released data on costs at colleges and universities from 1998-99 through 2016-17.
Among other private four-year institutions in the state of Tennessee for 2016-17, Johnson ranked 3rd lowest in cost among those who offer room and board.
Tuition/Total Costs 2016Johnson University = $13,950/ $19,770
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