KEY FINANCIAL METRICS & DASHBOARD REPORTING
1/26/2016KEY FINANCIAL METRICS & DASHBOARDREPORTING FOR HIGHER EDUCATIONINSTITUTIONSJanuary 26, 2016Jim CreedenPartnerjcreeden@bkd.comAdam SmithDirectorasmith@bkd.com1
1/26/2016TO RECEIVE CPE CREDIT Participate in entire webinar Answer polls when they are provided If you are viewing this webinar in a group Complete group attendance form with Title & date of live webinar Your company name Your printed name, signature & email address All group attendance sheets must be submitted to training@bkd.com within 24 hours of live webinar Answer polls when they are provided If all eligibility requirements are met, each participant will be emailed their CPE certificates within15 business days of live webinarGOALS FOR TODAYImportance of Financial Metrics & Ratio AnalysisReview & Evaluate Key Financial Metrics & RatiosComposite Financial Index (CFI) & Linkage to StrategicPlanningPresenting Results in Dashboards2
1/26/2016FINANCIAL METRIC & RATIO ANALYSIS Why important? Recent economic factors & industry pressures Transparency Accountability Identification of financial risks Method of communication to stakeholders Risk with peer comparisons Apples vs. oranges?MOODY’S & S&P RATING CONSIDERATIONS Four broad factors in assessing ratings Market profile Operating performance Wealth & liquidity Leverage Self-assessment & benchmarking3
1/26/2016MOODY’S & S&P RATING CONSIDERATIONS Positive indicators of self-assessment & benchmarking Identification of key performance indicators Monitoring of key performance indicators Examples of leadership actions based on performance relative to key indicators Comparison to carefully selected set of peers4
1/26/2016Resource Sufficiency & Liquidity RatiosRATIO/METRICOVERALL OBJECTIVES Primary reserve ratio Monthly/annual days ofcash on hand Monthly/annual liquidity Expendable financialresources Monthly/annual liquidity todemand debt Sufficient amount of fundsto meet current & futureoperating & capitalrequirements Ability to achieve & sustaina level of resourcessufficient to realize mission Insight about capacity tomanage through stress Operating flexibilityPrimary Reserve Ratio Calculation Compares expendable net assets tototal expenses Snapshot of financial strength &flexibility Indicates how long institution canfunction using expendable reserveswithout relying on additional netassets generated by operations Assets that could be access quickly tospend to satisfy obligationsNumeratorDenominator PrivateInstitutionPublicInstitutionExpendableNet AssetsExpendable netassets plus FASBCU expendablenet assetsTotal ExpensesTotal expensesplus FASB CUtotal expensesHelps understand affordability ofstrategic plansSource: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)5
1/26/2016Primary 00.102012201320142015Represents a sample of 40 Midwest based private institutionsMonthly/Annual Days of Cash On Hand Measure number of days aninstitution is able to operate fromunrestricted liquidity within onemonth & one yearNumerator Measure of operating flexibility &cushionHighly correlated with Moody’sratingsDenominatorMonthly/AnnualLiquidity X 365Total expenses less:DeprecationOther large noncashexpenses6
1/26/2016Days of Cash on nts a sample of 40 Midwest based private institutionsMonthly/Annual Liquidity Distinguishing between wealth &liquidity Takes into account donorrestrictions, accounting rules,investment strategies, etc. Assess how much liquidity to meetlarge unexpected payments, demandor accelerated payments on debtFunds available within one month (one year)Consists of unrestricted operating accts orOther non-endowment unrestricted fundsLesser ofFunds available within one month (one year)in endowment or other long-term funds orUnrestricted Board Designated Endowmentas presented in footnotes or self-reported(public institutions)7
1/26/2016Expendable Financial Resources Indicates amount of net assetsspendable in long runTotal unrestricted & temporarily restrictednet assetsLong-term debt, less net investment inplantSource: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)Expendable Financial Resources to Direct 002012201320142015Represents a sample of 40 Midwest-based private institutions8
1/26/2016Monthly/Annual Liquidity to Demand Debt Liquidity availableto coveroutstandingdemand debtNumeratorMonthly/AnnualLiquidity MeasureDenominatorDemand Debt:All VRDOsCommercial PaperPut BondsOutstanding Lines of CreditLoans or private placementswith put features(Excludes regularly scheduledprincipal maturities)Operating MetricsRATIO/METRICOVERALL OBJECTIVES Net operating revenuesratio Cash income ratio Net tuition dependency Net tuition per student FTEratio Deferred maintenanceratio Operating income ratio Sufficient amount of fundsto meet current & futureoperating & capitalrequirements Ability to achieve & sustainresources Insight about capacity tomanage through stress Operating flexibility9
1/26/2016Net Operating Revenues Ratio Indicates whether totalunrestricted activitiesresulted in surplus or deficit Living within means? Positive & higher ratio showstronger performance as aresult of year’s activities Pattern of large deficits orsurpluses can be blicInstitutionsExcess(deficiency) ofunrestrictedoperatingrevenues overunrestrictedoperatingexpensesOperatingincome (Loss)plus net nonoperatingrevenues(expenses) plusFASB CU changein unrestrictednet assetsTotal unrestrictedoperatingrevenueOperatingrevenues plusnon-operatingrevenues plusFASB CU totalunrestrictedrevenueSource: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)Cash Income Ratio Good indication ofan institution’sliquidityA higher ratioprovides institutionwith a greateramount of flexibilityin its ublicInstitutionsNet cash providedby operatingactivitiesCash provided fromoperations plus cash receivedfrom appropriations foroperating purposes plus gifts& grants for operatingpurposes plus FASB CU netcash provided by operatingactivitiesTotal unrestrictedincome excludinggains or lossesOperating revenues plusappropriations revenues foroperating purposes plus gifts& grants revenues foroperating purposes plus FASBCU total unrestricted income,excluding gains & lossesSource: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)10
1/26/2016Operating Income Ratio Demonstrates extent towhich current-year activitieshave contributed to overalloperations Measures institutional selfsufficiency Highlights variability of thissource of income & need tomaintain quality & marketdemandAll InstitutionsNumeratorDenominatorOperating income(excludes investmentincome, contributions, netassets released fromrestrictions)Educational & generalexpensesSource: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)Deferred Maintenance Ratio Calculation Increasing ratio is anindicator of growingdeferred maintenance & anaging plantNumerator A decline in this ratio mustbe viewed in context ofother issues affectinginstitution, such as largeinvestments in andingmaintenancerequirementsExpendable netassetsExpendable netassets plus FASBCU expendablenet assetsSource: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)11
1/26/2016Net Tuition Dependency Ratio Dependency on tuition & fees Shows relative importance ofrevenue streamAll InstitutionsNumeratorNet TuitionAn increasing trend or overdependence isn’t desirable DenominatorTotal Revenue(Includesinvestment return)Source: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)Net Tuition Per Student FTE Ratio Analyzed with view oftuition discounting & aidIncreases show generatingmore per studentAll InstitutionsNumeratorDenominatorNet tuitionFull-time equivalentstudentsSource: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)12
1/26/2016Asset PerformanceRatio/MetricOverall Objectives Return on net assets Capitalization ratio Composition of equity ratio Is net asset growth sufficient? Capitalization provideflexibility? Right type of net assetgrowth to achieve objectives Sufficiently invested infinancial assetsReturn on Net Assets Ratio Measure of whether or notinstitution’s resources aregrowingDecline in this ratio may beappropriate if it reflects astrategy that will betterfulfill institution’s missionImproving trend– Institution is increasing netassets– Can set aside resources tostrengthen future titutionsPublicInstitutionsChange in netassetsChange in netassets plusFASB CU changein net assetsTotal net assetsTotal net assetsplus FASB CUtotal net assetsSource: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)13
1/26/2016Capitalization Ratio Determines financialflexibility on an accumulatedreturn basis A high capitalization implies– Financing flexibility– May not be leveragingassets & too much investedin physical assetsNumeratorModified Net AssetsDenominatorModified Total AssetsSource: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)Composition of Equity Ratio Reveals allocation of equityamong different types of assets– primarily physical & financial Stronger institutions typicallyhave a ratio in excess of 1 Equilibrium of investment forinstitution – tradeoffs betweeninvestment for currentgeneration vs. investment forfuture generationNumeratorDenominatorFinancial Assets(All assets expectPP&E)Physical assetsSource: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)14
1/26/2016Debt Management & CapitalRatio/Metric Overall ObjectivesViability ratioDebt burden ratioDebt service coverage ratioAge of facilityInterest burden Managing debt strategically? How much debt can beafforded? Methods for accessingadditional resources tosupport mission & objectivesViability Ratio Indicates availability ofresources to cover debtGenerally a ratio range of1.25x to 2.0x indicates astrong InstitutionsPublicInstitutionsExpendable netassetsExpendable netassets plus FASBCU expendablenet assetsPlant-related debtPlant-relateddebt plus FASBCU plant-relateddebtSource: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)15
1/26/2016Debt Burden Ratio Calculation Primarily measureslikelihood that you canrepay your existing loansThe higher the debtburden ratio, less of yourincome is ublicInstitutionsDebt serviceDebt serviceplus FASB CUdebt serviceTotalexpendituresTotalexpendituresplus FASB CUtotalexpendituresSource: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)Debt Service Coverage Ratio Amount of cash flowavailable to meetannual interest &payments on debtPrivateInstitutionsPublicInstitutionsComfort level thatinstitution hasincome to cover debtburdenAdjusted change inunrestricted netassets fromoperationsNet operatingincome plusnonoperatingrevenues plusinterest expenseplus depreciationplus FASB CUadjusted change innet assetsDebt serviceDebt service plusCU debt serviceDSR of less than 1means a negativecash flowNumeratorDenominatorSource: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)16
1/26/2016Age of Facilities Ratio Calculation Provides rough sense of aging offacilities & potential need for futureresources to be invested intofacilities Low ratio– Generally good– Indicates recent investment inplant– “Intangible asset” High ratio– Generally not good– Indicates deferredreinvestment in plant– Will require significantexpenditures in future– “Unrecorded tion plusFASB penseDepreciationexpense plus FASBCU depreciationexpenseSource: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)Age of epresents a sample of 40 Midwest-based private institutions17
1/26/2016Interest Burden Calculation Target range should be nogreater than 5% - 6% Principal is excluded fromthis ratio More useful in perpetualdebt blicInstitutionsInterestexpenseInterest expenseplus FASB CUinterest expenseTotalexpendituresTotal expendituresplus FASB CU totalexpendituresSource: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)COMPOSITE FINANCIAL INDEX Developed by KPMG & Prager McCarthy and Sealy, LLC in late 1990sDeveloped specifically for higher education institutionsWidely accepted set of ratios & overall measurement of financial healthFour core ratios Primary reserve ratioNet operating revenues ratioReturn on net assets ratioViability ratio18
1/26/2016COMPOSITE FINANCIAL INDEX Four ratios weighted & scored on scale Creates single score of financial health Single score allows weakness in one ratio to be offset by strength inanother ratioRatioscomputedConvertedto strengthfactorFactorsweightedFournumberstotaledCFI THOUGHTS & IMPLICATIONS Scores do not have precision Indicators of ranges of financial health Best served calculated over time period Does not include a “deferred maintenance” factor Provides opportunity for constant assessment of institutional performance Stated graphically19
1/26/2016CFI SCALEScale for Converting Core Ratios to Strength FactorsSCORING SCALE13100.133x.4x1.33xPrivate Institutions0.7%2%7%Public ary Reserve RatioNet Operating Revenues Ratio:Return on Net Assets RatioViability Ratio20
1/26/2016Weighting PatternsInstitutions withLong-Term DebtInstitutions withNo Long-Term DebtPrimary Reserve35%55%Net Operating Revenues10%15%Return on Net Assets20%30%Viability Ratio35%--RatioPeer Institution Profile Used for Analysis Liberal arts institutions Non-urban setting Enrollment approximately 1,30021
1/26/20162013 - 2015 CFI Scores for Peer InstitutionsRatio201320142015Primary reserve2.713.193.45Return on netassets0.810.590.28Net operatingrevenue ratio1.350.70-0.24Viability0.941.070.88CFI Score5.815.554.37Graphic Financial ProfilePRIMARY RESERVE RATIO10103RETURN ON NETASSETS RATIO103310NET OPERATINGREVENUE RATIO310VIABILITY RATIO22
1/26/20162015 Graphic Financial Profile101031031033103 year averageCFI SCALE20152014201323
1/26/2016Linking Mission to Strategic & Other PlansInstitutional MissionStrategic Plan(Goals, Strategies,Key Metrics)Institution RiskManagement SummaryInstitution Wide Plans(Academic, Research, Facilities, Operating & Capital Budgets, etc.)Institutional Academic & Administrative ProcessesSource: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)INSTITUTION-WIDE STRATEGIC FINANCIAL QUESTIONS How does institution evaluate & address Financial risks Operating Capital What is institution’s liquidity & how does it affect operations?Is debt used strategically?Are financial resources allocated to support institutional strategies?What is institution’s overall financial health?Source: Strategic Financial Analysis in Higher Education, Seventh Edition (KPMG, Prager Sealy and Co., and Attain, 2010)24
1/26/2016Benefits of Dashboard Reporting Dashboard popularity continues to rise Provides efficiency in analysis vs. spreadsheets &reports Identify trends more easily & efficiently Simple way to line up goals/strategies toperformanceDashboard Example25
1/26/2016Dashboard ExampleFinanceAdvancementEndowment Market Val ue158158137i n mi l l i onsEndowment Market Val ue10.48.38.3Change i n Endowment7.50%7.50%-8.40%Total Gi fts and Grants40%37%37%FacultySpendi ng Rate5.00%5.00%Student/Facul ty12:111.6:111:15.00%Donor-Supported Ai d20.80%17.60%17.60%Al umni Parti ci pati on93%89%89%Annual Operati ng Margi n2.80%2.80%1.30%0%4%Return on Net Assets7.30%7.30%-5.70%Key:Hi ghest val ue for past 5 years4%Current Val ue22%20%Lowest val ue for past 5 year2%Di recti on of changehi gherl owerno changeImportance of changebl ue betterred worseDashboard Example2011-2012FT degree enrollmentNet tuition per FTENet tuition dependencyCFIDays of cash on handDebt Burden RatioExpendable FinancialResourcesAge of FacilitiesEndowment per FTEPrimary Reserve Ratio2012-20132013-20142014-2015 1 yr changeDownUpUpDownDownUpUpDownDownUpStrategic Direction1 yr goal5 yr trendUpUpUpUpUpUp/Up5 yr goalUpUpUp26
1/26/2016Moody’s27
1/26/2016QUESTIONS?CONTINUING PROFESSIONAL EDUCATION (CPE) CREDITSBKD, LLP is registered with the National Association of State Boards of Accountancy (NASBA) asa sponsor of continuing professional education on the National Registry of CPE Sponsors. Stateboards of accountancy have final authority on the acceptance of individual courses for CPEcredit. Complaints regarding registered sponsors may be submitted to the National Registry ofCPE Sponsors through its website: www.learningmarket.org.The information in BKD webinars is presented by BKD professionals, but applying specific information to your situation requirescareful consideration of facts & circumstances. Consult your BKD advisor before acting on any matters covered in these webinars.28
1/26/2016CPE CREDIT CPE credit may be awarded upon verification of participantattendance For questions, concerns or comments regarding CPE credit,please email BKD Learning & Development Department attraining@bkd.comTHANK YOU!FOR MORE INFORMATIONJim Creeden // jcreeden@bkd.comAdam Smith // asmith@bkd.com29
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Jan 26, 2016 · Denominator Plant-related debt Plant-related debt plus FASB CU plant-related debt Indicates availability of resources to cover debt Generally a ratio range of 1.25x to 2.0x indicates a strong creditworthy institution Source: Strategic Financial Analysis in Higher Education, Seven
of new dashboard, click Zreate New Dashboard [ button on the dashboards view. New Dashboard will be opened in design view, ready to be designed and configured. 3.1. Free Position – Dashboard Layout In this dashboard layout mode, dashboard consist of one area where dashboard tiles (charts) are positioned in any preferred way.
3: HR metrics ⁃ Examples of different HR metrics ⁃ HR process metrics vs. HR outcome metrics 4: HR and business outcomes ⁃ Going from HR metrics to business metrics ⁃ The difference between metrics and KPIs Course & Reading Material Assignment Module 2 Quiz 2 VALUE THROUGH DATA AND HR METRICS MODULE 2
Nine key SaaS and subscription metrics to understand business health 3 Attracting investors: Key financial metrics for early stage and series A funding 7 Attracting investors: Key financial metrics for series B funding 8 SECTION TWO How the right tools for SaaS and subscription business reporting and metrics propel growth .
the metrics, best-practice in reporting the metrics to CDP, and includes worked examples. Section 4: Guidance on breaking down portfolio impact metrics by asset class, industry, geography and scope, including a worked example. Section 5: A discussion on how financial institutions can go further in using theses metrics once
Dashboard design. When you are designing a Dashboard in a car, you need to consider that other drivers might use the dashboard, you need to consider access to the dashboard, the layout, the personal preferences and so on. CHARLIE’S TIP So, if the Dashboard on P6 is comprisable to that of a Vehicle Dashboard, when things go wrong, and the .
Dashboard varies based on the size and name of the columns specifi ed at Dashboard design level. Since the height of each Dashboard is fixed, only the first 5 records can be viewed at a time. If the Dashboard contains more than 5 records, then the following buttons and links at the top of each Dashboard aid in viewing them:
3 series(E90) Z3/COMPACT (Dashboard 35080 CAS) C46(have two of this) C56: 5 series(E60) (Dashboard 35080 CAS) 6 series(E63/E64) 5/7 series列/X5 (Dashboard 35080 CAS) C46(before 1996) C56(before 1996) 24C02(9before 1996) C56(HIGH IKE) C56(HIGH-IKE) LOW(Dashboard only have; 7 seriesE65/E66: one button) E65(Dashboard 35080 CAS) E66(Dashboard .
Telelogic Dashboard Installation Guide walks users through the process of installing the following components: Telelogic Dashboard Portal, Telelogic Dashboard Collector and Telelogic Dashboard Web Services. The instructions provided in Section 4 of this document are for a full setup, often called a "clean install", of Telelogic Dashboard .
