Few things are more important to an institution's health and future than a sound financial footing, which is why ABACC prepares a financial benchmarking report for our association and its members using the four ratios of the Composite Financial Index and the index score itself. The Composite Financial Index was developed by KPMG and Prager, McCarthy, and Sealy, LLC, and though there is no set of ratios universally accepted within the independent sector of higher education, the CFI is widely accepted as a way to measure and explain the financial position of a private college or university. This analysis will provide member institutions a measurement of financial strength and a comparison to ABACC institutions as a whole.
Your institution’s CFI scores and ratios, however, will be included only in your individualized report. No data on individual institutions will be provided to other institutions. The individual study provided to member institutions will explain in non-technical terms the meaning of each of the individual ratios, how the ratios interact with each other in the composite index, and how one should interpret the final composite score. ABACC encourages you to study your report, consider where the data shows your institution to be relative to other member institutions and to where you would like for your institution to be, and include this data in your strategic decision-making.