ACU received an A on the Forbes 2024 college financial grade list, which highlights the financial stability of private universities in the nation. 

The Forbes 2024 college financial grades list was released earlier this month. Nearly 900 private universities were ranked, and ACU was in the top 50. Forbes calculates each college’s GPA by using the financial data provided by the National Center for Education Statistics. Among the criteria used by Forbes are endowment, reserve ratio and tuition.

“A university’s endowment is one of the components that provide the financial strength and stability for an institution,” said Kevin Campbell, executive vice president of operations. “It provides a consistent source of revenue for institutions and it enables us to reduce the burden of tuition on students.”

The endowment is one of an institution’s most important financial health determinants. An endowment includes funds that the university holds and invests in, which creates long-term stability for an institution. 

“For example, at ACU, tuition is only about 54% of the revenue that we receive,” Campbell said. “Half of it is from other sources, the endowment being the biggest portion of that other source.”

Every year, about 4.5% of the endowment is distributed for ACU to use. The endowment benefits students in ways such as funding scholarships and facility maintenance and ensuring that the university won’t experience closure.

The Forbes list emphasizes the importance of students picking a financially sound institution to avoid being set back by university closures. According to the State Higher Education Executive Officers Association, over 500 universities have closed in the last 10 years. 

“I think Forbes realizes that an endowment is a major point of viability for any institution, and those institutions who have large endowments are not going anywhere,” said Dr. Phil Schubert, president of the university.

Schubert said university closures cause disruptions in a student’s degree and reassured that ACU students won’t have to endure that distraction, due to the financial strength of the university.

“As a private faith-based institution, we’re in a top echelon of some financially secure and strong institutions across the country. Which positions us for greater impact in fulfilling our mission,” said Schubert.

ACU was also ranked fourth in the state of Texas and was one of 54 institutions that received an A or higher. ACU was also the highest-ranked institution in the Council of Christian Colleges and Universities.

“It’s a great way to be reminded of how incredibly blessed we are at ACU, which I believe comes with responsibility to make sure we’re doing big things with the blessings we’ve been given,” said Schubert. “I think it is something that is a mark of honor.”

Forbes uses the following nine metrics to evaluate a universities financial health.

• Endowment assets per full-time equivalent student (17.5%)
• Primary reserve ratio (15%)
• Tuition as a percentage of core revenues (15%)
• Viability ratio (10%)
• Core operating margin (10%)
• Return on assets (10%)
• Admissions yield (7.5%)
• Percent of freshmen getting grant aid (7.5%)
• Instruction expenses per full-time equivalent student (7.5%)