The financial challenges facing private colleges and universities today are unprecedented – institutions are closing at a rate of almost one per week in 2024. To navigate this uncertain environment, Stevens Strategy introduces the Vulnerability Gauge—a cutting-edge tool designed to provide an early warning system for financial instability.

Developed by Mike Townsley, Ph.D., an expert in higher education finance, with support from Pat Cooper and Jack Corby, the Vulnerability Gauge evaluates your institution’s financial vulnerability by analyzing critical factors over the past five years. These include the burnout ratio of unrestricted net assets, full-time equivalent (FTE) enrollment trends, and tuition discounting practices. By applying logit regression, the tool calculates a probability score that places your institution within one of four risk categories—ranging from Low Risk to High Risk.

This assessment is not just a diagnostic; it is a strategic resource. A negative trend in unrestricted net assets or declining FTE enrollment signals that your institution may face financial trouble. The Vulnerability Gauge equips college leaders with the data-driven insights to act swiftly and strategically. Whether you’re looking to reinforce financial stability or avoid a potential crisis, the Vulnerability Gauge is a vital tool in your strategic planning arsenal.

Click here top purchase the Vulnerability Gauge to safeguard your institution’s financial future.