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Abilene Christian University ranked among the top private universities in the nation for financial health in the Forbes 2024 College Financial Grades, receiving an A rating.

The list assessed 876 private universities based on financial data from the National Center for Education Statistics. Including ACU, only 54 institutions received an A grade or higher, and ACU ranked fourth among Texas schools, ahead of peers like Baylor University and Southern Methodist University.

“I’m incredibly proud of our administration, faculty and staff and their dedication to stewarding our resources in such a complex environment,” said Dr. Phil Schubert, ACU president. “This recognition acknowledges ACU’s solid financial foundation – allowing us to provide a world-class education and an exceptional experience for Abilene Christian students.” 

These rankings are particularly relevant to students and parents in their college decisions. A recent Wall Street Journal article highlighted the impact on students when colleges close their doors, which is almost always due to financial pressure. The Journal reported that more than 500 private, nonprofit four-year institutions have closed in the last 10 years – three times what it was in the decade prior. Similarly, the National Student Clearinghouse Research Center examined 467 college closures from 2004-20 and reported that of the 143,215 students who were impacted by the closures, less than half of them re-enrolled at another institution. 

“When colleges close, they fail their students, detrimentally impacting students’ ability to complete their degrees and achieve their higher education goals,” Schubert said. “For students and families choosing ACU, they do so with great confidence, knowing we will see them through.”

The Forbes College Financial Grades report used nine metrics in evaluating the financial health of private, not-for-profit colleges:

• 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%)

ACU’s net assets reached $1 billion in 2023, thanks in part to the outstanding performance of the university’s endowment, which was valued at $823 million as of July 2024.

— Wendy Kilmer
Sept. 4, 2024